Top Tax Strategies for Small Businesses in Pascoe Vale
If you’re a small business owner in Pascoe Vale, you might be feeling the stress of tax season.
It’s crucial to review your business expenses and ensure that you’re claiming all allowable tax deductions, whether you’re still preparing your tax returns or seeking assistance.
To help you make the most of your deductions and manage your finances effectively, here are some top tax strategies.
1. Check for Eligible Deductions Under The Small Business Technology Investment Boost
Small businesses with an annual turnover of less than $50 million can now benefit from an additional 20% deduction on expenditures related to digitising their operations.
This includes expenses on items like portable payment devices, cybersecurity systems, and cloud-based service subscriptions.
However, there’s an annual cap of $100,000 on this expenditure.
Any expenditure over this amount can still be deducted under existing laws. This incentive is applicable for expenses incurred from 29th March 2022 to 30th June 2023.
2. Consider the Timing of Your Purchases
As a business owner, keeping up with the latest tax incentives and regulations is crucial.
Recent changes have seen the $150,000 instant asset write-off come to an end. However, it has been replaced with an instant asset write-off of $20,000 cap per asset.
This presents an excellent opportunity for you to make substantial purchases for your business, such as equipment or a commercial vehicle, and maximise your deductions at the same time.
It’s essential to assess your business needs and financial situation to determine if this is the right step for you.
Having a strong business accountant like RDV Business Solutions by your side can make all the difference.
Our team of experts is always up-to-date with the latest tax incentives and can help you navigate the ever-changing tax landscape.
We can provide you with tailored advice and strategies to ensure you’re making the most of the available incentives and deductions.
Don’t miss out on opportunities to maximise your tax savings. Consult with RDV Business Solutions to ensure you’re making informed decisions that align with your business goals and financial situation.
Remember, it’s not just about staying compliant; it’s about making strategic decisions that can positively impact your bottom line.
3. Small Business Energy Incentive for Pascoe Vale Businesses
In a bid to promote energy efficiency and electrification, the Australian Government announced a significant incentive for small businesses on 30 April 2023.
This incentive is specifically tailored for businesses with an annual turnover of less than $50 million.
Key Highlights of the Energy Incentive:
Additional 20% Deduction:
Businesses can avail an extra 20% deduction on expenditures that promote electrification and efficient energy use. This is a substantial benefit for businesses looking to upgrade or invest in new energy-efficient assets.
To qualify for this incentive, the assets or upgrades should be first used or installed and ready for use between 1 July 2023 and 30 June 2024. It’s worth noting that this measure is still pending approval and is not yet law.
Types of Investments Covered:
The incentive covers a range of investments that businesses can make. This includes electrifying heating and cooling systems, upgrading to energy-efficient fridges and induction cooktops, and the installation of batteries and heat pumps.
Cap on Expenditure:
The incentive covers up to $100,000 of the total expenditure. This means the maximum bonus tax deduction a business can avail is $20,000.
4. Review Your Super Contributions
Business owners and their family members can consider making the maximum annual concessional super contribution of $27,500.
This may involve topping up employer contributions paid through the business or personal contributions into the individual’s super account. Also make the most of the carried forward unused concessional contributions.
5. Make Strategic Decisions
As you prepare your tax returns, it’s essential to tie up any loose ends.
Consider the implications of loans made to shareholders, associated individuals, or trusts, and ensure compliance with Division 7A.
Review the tax position of each affected shareholder and ensure the company has sufficient franking credits to pay a fully franked dividend.
If you have discretionary trusts, consider the desired allocation of income between beneficiaries and document the trustee’s determination.
Tax season can be a busy time for small businesses in Pascoe Vale, but with the right strategies, you can maximise your deductions and manage your finances effectively.
By reviewing your expenses, timing your purchases, and making strategic decisions, you can optimise your tax position and set your business up for success.
Contact RDV Business Solutions
If you still haven’t started preparing your business and personal tax returns, or if you’re looking for help with your tax return, contact RDV Business Solutions.
Our team of expert accountants is here to help you navigate the tax season and ensure you’re claiming all allowable deductions.
Don’t miss out on valuable tax savings – contact us today!
Please note that the information in this article is for general informational purposes only and does not constitute financial advice.
For personalised tax advice tailored to your specific circumstances, please get in touch with RDV Business Solutions.
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