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.
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End of Financial Year: Prepayment Strategies For Non-SBE
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.