3 tax time tips to maximise your end of financial year small business success

We are getting closer to that busy time of the year again: Tax Time. If you are a small business, it’s time to balance the books, organise your receipts and go shopping!

The Government’s $20,000 tax deduction initiative is one of the best tax breaks for small businesses in Australia and a great excuse to do some shopping. In a nutshell, businesses can buy and instantly write-off items of machinery or equipment for use in their business, provided the asset costs less than $20,000 and was purchased between 12 May 2015 and 30 June 2018. It’s important to note that the benefit is only applicable if you qualify as a small business entity.

Our Winc eofy sale helps you maximise your 2018 tax time savings with discounts across a huge range of tax deductible items such as office furniture, kitchen equipment, laptops, printers, tablets, and more. The $20,000 limit applies to each individual item, and you can apply it to as many items as you want. We have listed out our favourite tax time tips to help you save time and money.

What can be deducted

According to the ATO you can tax deduct:

  • Home Office expenses: If you are a sole trader and your home is your place of business you can claim tax deductions. This can be for a part of the costs of owning, maintaining and using your home for this purpose.
  • You can claim a deduction for the decline in value of your depreciating assets. If you are small business, depreciating assets may include printers, scanners or shredders.

What can’t be deducted?

Likewise, it helps to understand what isn’t tax deductible. @GaddBelinda from Intuit Quickbooks highlights that small businesses can’t claim:

  • Home to work travel.
  • Selected business travel and phone use: make sure you only claim apportioned expenses.
  • Buying your own business is not tax deductible. Related costs like website expenses and annual registrations may be.
  • Other items you can’t deduct include self-education, meal costs and raffle tickets. Volunteer work, child minding expenses and vaccinations also fall under this status.

Use the ATO online resources to your benefit

The Australian Tax Office has some fantastic resources to make Tax Time easier:

  • This calculator will help you work out the income amounts you need to answer the Small business income tax offset in your tax return. This offset can help reduce the tax payable on your small business income by up to $1,000 per year.
  • The ATO also helps you keep track of your business income and expenses via its myDeductions tool. Android and Apple device versions are available.
    Finally, a convenient way to lodge your business tax return is online via the myTax portal. Access is either by desktop, tablet or mobile. The deadline for lodging your tax online with myTax is 31 October, 2018 but make sure you start early!

Being aware of what you can and can’t claim will enable you to process you tax claims faster. Above all we recommend you contact your local registered tax practitioner. This will allow you to get expert advice before you lodge your business tax deduction claim for 2018.