Deductible Superannuation Contributions
[vc_row][vc_column][vc_column_text disable_pattern=”true” align=”left” margin_bottom=”0″]The maximum superannuation contributions that can be claimed by employers on behalf of employees is: YEAR AMOUNT 2014-15 $30,000 2013–14 $25,000 The above contribution limits apply equally to self-employed taxpayers who can claim a 100% deduction where less than 10% of the taxpayer’s total assessable income and
Writing off Bad Debts
Where a taxpayer accounts for income on a non-cash basis and has previously included the amount in assessable income, a deduction for a bad debt can be claimed in 2009/10 so long as the debt is declared bad by 30 June 2010. The business will need to show that it
Claiming Deductions for Expenses Not Paid at Year End
Both SBE and non-SBE taxpayers are entitled to an immediate deduction for certain expenses that have been “incurred” but not been paid by 30 June 2014 including: Salary and Wages. A tax deduction can be claimed for the number of days that employees have worked but have not been paid
Maximising Depreciation Claims for Non-SBE Taxpayers
An immediate deduction can be claimed for assets costing less than $100 GST inclusive (e.g. minor tools). A tax deduction can be claimed for depreciable assets that are scrapped or sold for less than their written down value. Assets costing less than $1,000 GST exclusive can be allocated to a
Valuing Trading Stock
Both SBE and non-SBE taxpayers have the option of valuing trading stock on 30 June 2010 at the lower of actual cost, replacement cost, or market selling value. Furthermore, this valuation can be applied to each item of trading stock. For example, where the market selling price of stock items
Deferring Income & Capital Gains
Businesses that return income on a cash basis are assessed on income as it is received. A simple end of year tax planning strategy is to delay “receipt” of the income until after 30 June 2014. Businesses that return income on a non-cash basis are generally assessed on income as
Prepayment of Expenses
Certain prepayments are not subject to the above 12 month rule and therefore both SBE and non-SBE taxpayers may be able to claim deductions for expenditure that is: less than $1,000 GST exclusive; or incurred under a law of the Commonwealth, State, or Territory. Common examples are motor vehicle registration
Small Business Entity (SBE) Tax Concessions
The “small business entity” (SBE) tax rules provide access to a range of concessions that businesses can apply without the need to make a formal election in the tax return. A business can choose which one or all of the concessions to apply. In order to be an SBE, the
Small Business Tax
Tax Planning Considerations for Businesses Business owners should now be talking to their accountant about ways to legitimately reduce the tax bill for 2014. Some tax planning techniques differ depending on whether the business is a “small business entity” and there are common strategies that should be considered prior to