2010/2011 Year End Tax Checklist for Business

Many of our clients like to review their tax position at the end of the financial year and evaluate any year end strategies that may be available to legitimately reduce their tax.

Traditionally, year end tax planning for small business is based around two simple concepts— accelerating business deductions and deferring income. However Small Business Entities (SBE’s) have greater access to year end tax planning due to particular concessions that only apply to them. Tax payers that qualify as an SBE can pick and choose which of the concessions they wish to use each year (although some restrictions still remain in relation to the SBE depreciation rules). The basic requirement to be eligible is that the business taxpayers annual turnover (including that of some entities) is less than $2 million.

Deductions for SBE taxpayers

  • Accelerating expenditure – all SBE taxpayers can choose to write off depreciable assets costing less than $1000 in the year of purchase. Also all assets costing more than $1000 or more with an effective life of less than 25 years can be depreciated at 15%(which is half the full rate of 30%) in their first year.
  • Prepayment strategies including rent on business premises and equipment, lease payments, interest prepayments if possible. Business trips, training courses and cleaning

Deductions for non SBE taxpayers

  • Prepayment of expenditure under $1000, salary and wages or expenditure incurred under the law
  • Accelerating expenditure whereby the taxpayer brings forward the expenditure on a regular ongoing deductible basis. The following is a checklist of possible items:
    • Depreciating assets costing $100 or less can be written off in the year of purchase
    • Repairs
    • Consumables/spare parts
    • Client gifts
    • Advertising
    • Fringe benefits
    • Superannuation (that are actually made they cannot be accrued
  • Accrued Expenditure (including the following:
    • Salary or wages and bonuses
    • Interest
    • Commercial Bills
    • Commissions
    • Fringe benefits Tax
    • Directors fees

Comments are closed.

Request a Home Loan Quote

Contact Details


Personal Information


Loan Details

 Fixed Rates

To ensure we offer you the best loan options, please provide any extra details on your scenario below.

All information is considered private and confidential, a staff member will be in touch with you the next working day, Mon-Fri, 9am - 5pm.

Request an Insurance Quote

Contact Details


Employment



Health and Lifestyle

 I am smoker

 High Blood Pressure
 Depression/Anxiety/Nervous Disorder
 Heart Problems
 Diabetes
 Asthma

Quote Requests

 Life
 Trauma
 TPD

Request an Accountant Meeting

Contact Details


Requirements

 I am up to date with my quarterly BAS.
 I would like Belmont Group to do my quarterly BAS
 I need general accounting help
 I need a bookkeeper
 I have taken out income protection insurance
 I have taken on a lease/chattel mortgage/loan
 I need advice on tax deductions