As tax time nears, we spoke with tax expert Dr Adrian Raftery, Principal of Mr Taxman and the author of 101 Ways to Save Money on Your Taxes – Legally!
According to Dr Raftery, with the end of the financial year (EOFY) drawing closer, now’s the chance for businesses to capitalise on any tax advantages. This includes investing in items that make the workplace a better place to be for your employees such as state-of-the-art technology, furniture, or appliances. These are the types of items that could be tax deductable, potentially boosting your business tax refund or minimising your tax liability.
What should businesses know before purchasing for EOFY?
In 2023-2024 financial year period, the temporary full expensing method is no longer available but the ‘instant asset write-off’ has been reinstated to allow eligible businesses to claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use. Small and medium businesses with a turnover of less than $50 million can claim a deduction for business-related assets.
According to Mr Taxman, there are three golden rules for what makes a valid business deduction based on Australian Tax Office guidelines.
“The expense must be business related, only the business portion of an expense that is a mix of private and business can be claimed, and you must have records such as receipts to substantiate your claims,” says Dr Raftery.
“In the lead up to EOFY, consider investing in people, technology and amenities to drive your business productivity further and increase the wellbeing of your employees.”
Invest in comfort for your people.
Investing in new furniture for the workplace can help attract and retain talent by showing employees that their comfort and wellbeing is important. This can lead to increased employee satisfaction and boost productivity. In the furniture space, new sit-stand desks and ergonomic chairs can improve comfort and support a healthy posture. Also seek to invest in accessories such as footrests, memory foam backrests, or seat cushions.
“If your business is expanding, you may require additional furniture pieces to accommodate new staff. The EOFY sales period is an ideal time to invest,” Dr Raftery adds.
Make collaboration seamless.
As technology evolves, don’t be left behind by outdated technology that hampers productivity or causes down time due to incompatibility or breakdowns. EOFY is also an opportunity to enhance connectivity in the office by investing in meeting room set up technology. Generally, expenses for items like computers, software, smartphones, tablets, printers, and other technology-related equipment can be claimed as business expenses.
Make your kitchen into a hub.
The EOFY sale period also presents an opportunity to ensure that kitchen facilities are functional and welcoming, encouraging employees to use these spaces to work in, take breaks in and catch up with colleagues informally.
“Replicating appliances commonly found at home can enhance satisfaction and further aid employees in saving money by preparing their meals on-site instead of purchasing lunches. Review the quality, features and lifecycle of your current appliances such as coffee machines, toasters, sandwich makers or microwaves to enhance the experience of your employees!” Dr Raftery adds.
Dr Raftery adds “Don’t wait until the last minute. Anytime from now until the end of the financial year is a good time to get organised. Ensure your EOFY purchases are planned and completed well before the upcoming June 30 deadline and remember to keep your receipts for claiming and record-keeping purposes.”
Shop our EOFY sale and browse our extensive selection of office supplies, kitchen, technology and furniture.
Disclaimer: This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.
