TAX INSIGHTS FOR BUSINESS TAX

EOFY Tax Tips

EOFY TAX TIPS Subject to cashflow requirements, consider holding off raising invoices until after 30 June, especially if you expect lower income in the following tax year. In order to claim a superannuation tax deduction in the current tax year, the contribution has...

Benchmarks

BENCHMARKS The ATO considers ‘cash economy’ businesses high risk. These include cafes, hairdressers and cleaners. Many customers of these businesses pay by cash, and, if this income is not included in the tax return, the ATO misses out on tax and GST. One way that the...

Motor Vehicle – cents per km

MOTOR VEHICLE CENTS PER KM The cents per km method of claiming motor vehicle expenses can be a lucrative claim, but you can only claim up to 5,000kms. No substantiation is needed, just a reasonable basis for the claim - e.g. 3 times a week from Mitchell to Woden for...

Motor vehicle logbooks

MOTOR VEHICLE LOGBOOKS The ATO requires a logbook be kept for a continuous 12 week period. It needs to be started in the year that you are claiming the expenses for.  This means that a logbook for a car bought in January can be started as late as 30 June. As long as...

Running Expenses

BUSINESS RUNNING EXPENSES If you have a sole purpose office at home, you can claim electricity, gas, and water consumption, on the same % as the office to the total floor size. Claiming running expenses does not lead to Capital Gains Tax (CGT) when the house is sold....

ATO Data Matching

ATO DATA MATCHING The ATO uses data matching to determine whether or not an audit is required.  Data matching compares data from different sources against lodged tax returns.  If there is a discrepancy, the ATO may escalate the tax return for further investigation....

Asset Definintion

ASSET DEFINITION When is an expense not an expense? When it is an asset. The accounting definition of an asset is an item that has a life of more than 12 months. The ATO has reams of tables concerning the effective life of assets. This then dictates the depreciation...

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