5 Key Points For Small Business Owners To Keep In Mind When Filing A Tax In Australia

December 4, 2020    Accountant Perthwa

With the onset of every taxing year, Australia’s small business accountants start to get butterflies in their stomach. The end of financial year may seem like any other time of the year for small business owners. The fact is there are quite a few taxing and financial obligations which they need to comply with. Australian taxpayers search online about their potential claimable deductions and start collecting faded receipts subsequently. Hire a top-notch tax accountant Perth to get the best assistance in this matter.

Five crucial aspects worth remembering

So, small businesses in Australia get ready to complete your taxing duties impeccably! This is because today’s post will really be of great help to all the Australian small business owners like you. It will familiarize you with the top five crucial taxing aspects considering which you can meet your taxing obligations effectively. What’s more, by adhering to these important aspects, you can identify all the relevant deductions which you can claim unhesitatingly.

  1. Learn about the things comprising ATO’s watchlist

The Australian Taxation Office during every taxing year familiarizes Australians about certain things which they consider worthwhile. The ATO zeroes in on certain crucial aspects which they consider can be beneficial for small businesses in Australia. Moreover, the year of 2020 has been quite challenging for the ATO due to the Covid-19 pandemic. Some of the common costs which the ATO considers imperatively include expenses for home offices, laundry and car use etc.

Potential Claimable Deductions

Based on what you just read above, it time for small businesses to get familiar with their potential deductions. So, to get started, the ATO’s top list is comprised of deductions on cryptocurrencies. These digital currencies have gained a massive popularity in the entire Australia. The ATO has also cautioned the investors not to invest on currencies like Ethereum or Bitcoin etc. Conversely, the Australian Taxation Office has a number of advanced tools to simulate online exchanges, financial organizations and banks etc.

Work from Deductions

Are you operating your small business from home at the moment due to the Covid-19 pandemic? If yes, then there are certain deductions which you can claim. These include expenses on your home office equipment, computers, cooling and heating systems and furniture etc. However, you can claim these deductions only if you have a substantial home office space.

  1. Optimize the offset of Australian income tax

Your small business is entitled to the small business income tax offset only if it is unincorporated. So, make sure that your revenue is below $5 million. As a result, you will get entitled to an exemption of $1000 in your tax bill. At present, there is an 8% offset comprising your company’s tax payable. Besides, the ATO is also pondering over bringing an upsurge in this rate of 16% by the year 2027.

Who can optimize the Australian income tax offset?

The privilege stated above can be availed by certain category businesses. These include the following:

  • Businesses which share in the net income of small businesses from a trust or partnership and
  • The various sole traders of Australia

These offsets will be particularly beneficial for micro business proprietors whose businesses require an optimal growth.

  1. Comprehend the various CGT amendments

To Maximize Your Tax Refund In 2020 you must become aware of the notable Capital Gains Tax amendments. The ATO had proclaimed these changes until recently. These changes will allow small business owners to access some amended capital gains tax exemptions after they sell their business. A checklist of these changes executed recently can be considered below.

  • Every small business has to qualify in a net asset exam of $6 million. According to this criterion, their net assets altogether should be below $6 million.
  • A fresh set of requirements as stated by the ATO which every small business in Australia must comply with. Small business owners in Australia must adhere to these criteria before the event of business sale or CGT occurs.

You can contemplate upon availing the discussed CGT concessions if you’re selling your small business in Australia.

  1. Claim all your potential deductions

This is undoubtedly the most remunerative strategy which small business owners must adhere to during every taxing time. According to this advice, make sure you’re claiming all your potential deductions without a miss. These chiefly include deductions related to your professional, accounting and legal advice, your business utilities, rent or repairs in Australia. You can do it in assistance of the best small business accountants Perth Australia. Your accountant will ask you to claim a couple of expenses more possible from your end. So, here are some of the additional expenses which you can claim in relation to your small business.

  • All your repair expenses and
  • Expenses related to the pre-paying rent of your small business

The biggest challenge is that you have to justify each of these deductions to the Australian Taxation Office through proper evidence. Besides, these deductions should be related to the earning of your income or else you cannot claim them.

  1. Complete your superannuation duties on time

Do you also wish to claim the tax deductions related to the superannuation payments which you’ve made for your employees? If yes, then you should have completed and paid for your super before 30th June, this year. If don’t do it, you will miss the scope of claiming your pertinent superannuation deductions. You must pay your super within 28 days followed by every quarter’s end. If you miss the quarter deadline, it will not be considered tax-deductible in any way.

Choose a tax accountant in Perth!

So, this taxing time, don’t miss a single opportunity to complete your taxing duties and obligations impeccably. All you need to do for that is to hire a tax accountant in Perth, Australia. A tax accountant in Perth is aware of the various rules of compliance, ATO’s legal terms and aspects. Depending on your unique circumstances your tax accountant, Perth will help you to accomplish your taxing duties faultlessly. So, to avail first-rate accounting services Perth hire a tax accountant in Perth today!

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