As the owner of a small or medium-sized business, you should be no stranger to the complexities of the Australian tax system.
Although they say taxes are one of the absolute certainties of life, they shouldn’t weigh your business down. At Finance & Tax Consultants, our specialised team of expert accountants, tax agents and advisors is here to help you navigate the process of managing your taxes. In this article, we share five effective tax-saving strategies tailored specifically for your business.
1. Maximise Your Deductions
Understanding the tax deductions available to your business is key and make sure you are claiming all relevant deductions, such as:
– Business Expenses: Operating costs like rent, utilities, office supplies, and advertising can be claimed as deductions.
– Capital Expenses: These include equipment, machinery, and other assets needed for your business operations.
– Depreciation: The decline in the value of your assets, such as vehicles and technology equipment, can be claimed as deductions over the years.
It’s best to consult with our expert tax advisors to ensure you take full advantage of the deductions available to your business and say goodbye to unnecessary expenses!
2. Utilise Small Business Tax Concessions
The Australian Government offers various tax concessions to eligible small businesses. Some of these include:
– The Instant Asset Write-Off: This allows eligible businesses to claim an immediate deduction for new or secondhand assets costing less than a set threshold.
– Simplified Depreciation: This involves pooling assets into a general small business pool, which can simplify the claiming of depreciation deductions.
– The Small Business Income Tax Offset: This can reduce the tax amount payable by an eligible small business by up to $20k per year.
Don’t worry too much about this—our experienced tax consultants can help you identify and utilise any tax concessions your business may qualify for.
3. Plan Your Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is the tax you pay on any capital gain from selling an asset, such as property or shares. Here are some helpful ways to get you started:
– Wait at least 12 months before selling an asset to potentially benefit from the 50% CGT discount for individuals and small businesses.
– Claim eligible CGT concessions for small businesses, such as the small business 15-year exemption or the small business active asset reduction.
Consulting with our tax experts can help you take advantage of CGT planning strategies that best suit your business.
4. Utilise Effective Tax Structures
Choosing the right business structure (sole trader, partnership, trust or company) can significantly impact your tax obligations. Each structure has different tax implications, and choosing the one that most appropriately suits your business needs can help you save up on money. It doesn’t have to be too stress-inducing—our experienced tax advisors at Finance & Tax Consultants (FTC) can guide you through this decision-making process, helping you choose the optimal structure to minimise your tax liabilities.
5. Keep Accurate and Timely Records
Although mistakes happen, they can be devastating for businesses, especially tax-wise. Maintaining thorough, accurate and up-to-date financial records is crucial for managing your business’s tax obligations. Proper record-keeping helps you track your income, expenses, and other relevant financial information, making it easier to complete your tax returns accurately and claim all eligible deductions.
Partner with Finance & Tax Consultants (FTC) for Expert Support
For small and medium-sized businesses seeking to minimise tax liabilities and maximise profits, it’s crucial to take the right steps! The specialised Finance & Tax Consultants (FTC) team is dedicated to supporting your business through this complex process, offering expert advice and tailored solutions.
Disclaimer: This article is information and does not constitute financial, legal or tax advice.