This tax season, you’re going to breathe a sigh of relief. We’ve got six tax tips to help you save time and reduce stress this tax season. Read on to find out how you can stop procrastinating and start doing – well ahead of the 30 June 2021 deadline.
1. Claim the instant asset tax write-off
If you purchased any assets for your business this year, such as computers, laptops, tablets, office furniture or equipment, motor vehicles or other tools, you may be able to claim the instant asset tax write-off.
The federal government announced in May as part of its 2021-22 budget that it would be extending the instant asset tax write-off, allowing businesses with a turnover of less than $5 billion to write-off the cost of assets used or installed before 30 June 2023. Find out more HERE.
2. COVID-19 government payments
If your business received government grants or payments to support you during the bushfires or COVID-19, be sure to check which are considered assessable income. For example, if you made JobKeeper payments to employees, these need to be reported. But if you received cash flow boost payments, these are considered non-assessable, non-exempt income. Talk to your accountant for advice on standard deduction, taxable income and maximising tax refunds.
3. Take advantage of the small business income tax offset
As a small business owner, you could be eligible for up to $1,000 as part of the small business income tax offset. In order to be eligible, you must have had an aggregated turnover of less than $5 million for the 2020-21 year, and be a sole trader or have a share of net small business income from a partnership or trust. Find out more here.
4. Working from home during COVID-19
For many of us, our working conditions changed during COVID-19. If you worked from home, you may be able to claim a deduction for the expenses of running your office, work-related expense, personal expenses, office expenses, travel expenses, meal expenses and other deductible expenses considered a tax deduction. This can include things like electricity, cleaning supplies and home office equipment – along with charitable contributions or donations to those less fortunate during 2020. Tracking these expenses can be challenging, so you can use a temporary shortcut method to calculate these expenses with minimal record-keeping required. The shortcut method initially applied from 1 March to 30 June 2020, but it can now be applied up to 30 June 2021.
5. Pay your superannuation on time
To ensure your superannuation can be included in your tax deductions, you need to ensure all your contributions are paid by 30 June 2021. If you miss this date, you’ll have to wait until the following year to claim them on your tax return. When thinking superannuation or super funds – think employer contributions, concessional contribution, non-concessional contributions and payment summaries.
6. Get organised now and don’t miss these important dates
To avoid scrambling at the end of the financial year, get your paperwork and tax payments in order now and talk to your accountant. If you want to beat procrastination next year, think about how you can improve your document storage and filing processes to make it even easier. A cloud accounting software such as Xero, Quickbooks, or MYOB can help with this.
Find out how Jones Financial Group can help you secure finance for your business assets and take advantage of the instant asset tax write off. Get in touch today!