Maximising Deductions for SBE Taxpayers: Accelerating Expenditure
Date posted: Sunday, July 7, 2013
Over the last couple of weeks we’ve looked at non-SBE (non-small business entity) taxpayers and how they can maximise deductions. Now let’s take a look at how SBE taxpayers can do the same thing.
There are two ways in which SBE taxpayers can maximise deductions, one is by accelerating expenditure and the other is by prepaying deductible business expenses. This week we’re going to focus on accelerated expenditure.
So what is accelerating expenditure?
It’s where SBE taxpayers can choose to write-off depreciable assets that cost less than $6,500 in the year of purchase. Also assets costing $6,500 or more can be depreciated at 15% (which is half the full rate of 30%) in their first year.
If your business chooses to use the SBE depreciation rule it is effectively ‘locked in’ to using this rule for all depreciable assets.
Accelerating expenditure can be a little confusing and tricky. If you have any questions call us on (03) 5940 1836 and make a booking with one of the Pakenham Taxation + Accounting experts who can help you with all your tax, finance and accounting needs.
Sign up with Pakenham Taxation + Accounting to receive tips on how to better manage your personal and business tax.
Maximising Deductions for Non-SBE Taxpayers: Accelerating Expenditure
Date posted: Sunday, June 23, 2013
So what is accelerated expenditure?
Accelearting expenditure is where a business taxpayer brings forward the expenditure on regular, on-going deductible items. Business taxpayers are generally entitled to deductions on an incurred basis. Because of this there is generally no requirment for the expense to be paid by June 30. As long as the expnse has genuinely been incurred, it will generally be deductible.
Below is a list of items, which are possible for accelerated expenditure:
- Depreciating assets costing $100 or less can be written off in the year of purchase.
- Depreciating assets costing less than $1,000. These can be allocated to a low value pool and depreciate at 18.75% (which is half of the full rate)
- Repairs to office premises, equipment, cars or other business items
- Consumables and spare parts
- Client gifts
- Donations
- Advertising
- Fringe benefits
- Superannuation
Again we completely understand this may still be a little confusing. So if you have any question give Pakenham Taxation + Accounting a call on (03) 5940 1836 and make a book with one of our experts today.
