Small Business Checklist
Did You Know?
Small businesses with an annual turnover less than $2 million may be able to access a range of tax concessions. This applies whether you operate your business as a sole trader, partnership, company or trust.
Some of these concessions include;
• Simplified trading stock rules.
• Accelerated deductions for business equipment & motor vehicle purchases.
• Businesses are able to claim the full deduction in the year of purchase for business plant & equipment costing less than $6,500 GST Exclusive.
• For all other assets the depreciation rates will be 15% of the original cost (GST exclusive) in the year of purchase and then 30% each year after that.
• In regard to motor vehicles, small business are able to claim an immediate deduction for the first $5,000 (GST Exclusive) with the balance being claimed over future years in line with depreciation rules.
• Immediate deductions for prepaid expenses.
• Capital gains tax concession for when you sell your business.
• GST Concessions – choose cash accounting, instalments & annual private apportionment.
• FBT Concessions – ie possible exemption on car parking benefits.
End of Year Tax Tips
• Pay your employees super before 30 June to get the deduction that year;
• Write off any bad debts by 30 June to obtain the deduction and any applicable GST Refund.
• Log Books – make sure it reflects your current vehicle use and is less than 5 years old.