Deadline EOFY: Small Business Tax Tips

With the end of the 2014/2015 financial year looming around the corner, and the recent budget still in our recent memory, there has been a wide range of changes, benefits, and opportunities that small business owners should be aware of.

The big dip down to 28.5% 

In the 2015 budget, the Treasurer revealed that incorporated small businesses would see the current tax rate fall from 30% to 28.5%. The changing tax rate rolling out in the new financial year opens up a range of opportunities worth being aware of.

In addition, partnerships and sole traders were also given a 5% discount on their tax payable starting at the same time. So everyone carrying on a business has some tax planning to do to ensure they make the most of the changes.

Can you slow down incoming funds?

If you’re in a position to defer receiving taxable income until the start of the new financial year (July 1st), this revenue will be taxed at the lower rates coming into force from July.

Pre-paying to speed up deductions

If you’re prepared and able to cover the cost of upcoming bills pre June 30, you can lock in your deduction at the current, higher rates of tax, which may well have a positive impact on your future, maximising your tax position.

The $20,000 asset write-off

Since budget day, there’s been significant talk about the availability of instant deductions for the purchase of new business assets to the value of $20,000. Keep in mind, before you step out and buy that new TV for the office, there are a range of variables that will impact eligibility for the deduction, so ensure you’re prepared and have the right advice.

The information contained in this article is general by nature, and is not all encompassing, nor does it take your personal circumstances into consideration. If you’d like to chat about your specific circumstances, please contact us, or give the team a call.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466137.

 

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