Date posted: Sunday, June 9, 2013
We’re now in the month of June, which can only mean one thing… the end of the financial year. For many businesses and individuals this can be a very confusing time with questions like; what can I claim on tax. And, how can my business maximise deductions? At Pakenham Taxation + Accounting we like to help reduce these stresses, so over the next few weeks we’re going to post some tips, tricks and information all relating to the end of the financial year.
To kick things off we’re going to look at how non-SBE (non-small business entities) taxpayers can maximise deductions, firstly through prepayment strategies.
So what does a prepayment strategy include?
A prepayment strategy includes any part of an expense prepayment relating to the period up to the 30th June and is generally deductible in full.
In addition, non-SBE taxpayers may generally claim the following prepayments in full:
- Expenditure under $1,000
- Salary and wages
- Expenditure required to be incurred under law.
But just wait, before you go jumping the gun you should know that prepayments can be a little confusing, so before you commit to making a payment please feel free to call the Pakenham Taxation + Accounting team to help you out with all your queries. There’s no silly questions when it comes to tax.
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