Small business owners need to be aware of tax concessions. While you need to check your eligibility, here are a few concessions may apply:
1. Prepaid Expenses. You can claim an immediate deduction for prepaid expenses where you prepay amounts that are owed in the next 12 months. This can include rent and other liabilities. Payments need to be made prior to the end of the financial year in which you wish to claim.
2. Instant asset write-off. As a reminder the immediate deduction concessions have now ceased as at 30th June 2018. For purchases between 1st July, 2016 and the 30th June 2018 you can immediately deduct the business portion of most assets that cost less than $20,000 each if they were purchased and your turnover was less than $10 million.
3. Capital Gains Tax concessions. If you are over 55 years and disposing of your business and retiring then you could potentially access the capital tax SBE concessions including the retirement relief.
4. Super contributions. You may be able to contribute amounts from the capital gains tax retirement exemption to your super fund without affecting your non concessional contributions limits up to $500,000 per person.
5. Less tax! From 1st July 2018 businesses with a turnover of less than $50 million will have their tax rate cut to 27.5%.
7. Simpler BAS. The Business Activity Statements have reduced from a 20 question requirement down to three, making completing a BAS statement much compliance more simple.
Do you want to maximise your tax concessions?
If you are wanting to maximise your tax concessions it is always best to get advice from your tax accountant. Our specialise tax team can advise you on the best way to ensure you are maximising on the concessions available. They will also be able to advise on your individual circumstances and therefore your eligibility for these concessions.