The month of June not only sees the start of winter but its also the time of year that accountants most look forward to, tax planning time! If you’re a small business owner you don’t want to have to pay more tax than you have to. The following tips will ensure you get the most bang for your buck come tax time.
1. Take advantage of the $20,000 immediate asset write off
Unless you have had your head in the sand for the past month, you would know that the Federal Government announced in the budget released on 12 May 2015 that all eligible small businesses would be entitled to an immediate deduction for asset purchases costing less than $20,000. This measure replaces the $1,000 threshold which was in existence up to the announcement and will be in existence until 30 June 2017.
You will need to ensure that the assets are installed and ready for use by 30 June 2015 in order for the deduction to be available for the 2015 financial year. If you do not require any assets or haven’t got the cash flow to afford them before year end, it is really important to remember that you are able to write off the balance of any small business pool with a written down value of less than $20,000 and get an immediate deduction! Read more here