Tax Planning for Business

Home office fixed rate method

21 March 2023

If an employee or investor uses their home office for work or investment-related purposes, they can claim 67 cents per hour under the fixed rate method.  The 67 cents per hour covers energy expenses (electricity and gas), phone usage (mobile and home), internet, stationery, and computer consumables. No additional deductions are allowed for costs covered…

Read More »

Small business tax incentives for digital adoption

13 September 2022

Small businesses can receive a bonus 20% deduction on eligible expenditure supporting digital adoption. Eligible expenditure includes: digital enabling items, such as hardware, software, systems and services that form and facilitate the use of computer networks. digital media and marketing. e-commerce. The tax incentives apply to expenditure incurred from 29 March 2022 until 30 June 2023…

Read More »

Electric Cars are FBT Free

9 August 2022

The Treasury Laws Amendment (Electric Car Discount) Bill 2022 proposes to remove Fringe Benefits Tax (FBT) on eligible cars provided by employers to current employees for private use. The exemption applies under the following circumstances: To eligible electric vehicles first held and used after 1st July 2022. To cars with a purchase price below $84,916…

Read More »

Eliminate Division 7A problems

18 January 2022

Division 7A is an ATO integrity measure to ensure that private companies don't make tax free distributions of profits to shareholders or shareholders' associates in the form of payments, loans and debts forgiven. These rules only apply where the companies have retained profits. Under Division 7A shareholders or associates who receive payments or loans from…

Read More »

Can I deduct the cost of travelling to see my tax agent?

18 October 2021

A taxpayer can claim a deduction for the cost of travel to obtain tax advice. This travel includes:  Using a taxpayer's vehicle to visit their accountant's office. This can be calculated on a cents per km basis. Out of pocket transport costs incurred, such as airfare or taxi fare. Accommodation and meals incurred visiting their tax agent. (This…

Read More »

Small business restructure roll-over

13 July 2021

Business entity changes involve transferring a business from its current structure to a more advantageous structure. The most common reasons for business restructure are: Change in ownership: If an existing business is acquired (say a company), then the business structure may be changed (to a trust). Change in management: Taking on a business partner would involve…

Read More »

Temporary loss carry back for eligible companies

22 June 2021

On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will extend the loss carry back measure.  Companies can carry back losses from 2020, 2021 & 2022 income years to offset previously taxed profits made in or after the 2019 income year. This allows companies to generate a refundable…

Read More »

Deduct your overnight travel expenses

22 December 2020

Overnight travel expenses involve being away from home for at least one night for work or business purposes. Business or work travel is in contrast with other types of private travel such as for leisure purposes or regularly commuting between one's home and workplace. Reasons for work or business trips include servicing customers, working at…

Read More »

Tax deductions for handbags, briefcases and satchels 

13 October 2020

Handbags, briefcases and satchels purchased to carry items for work purposes (such as laptops, tablets, work papers or diaries) may be deductible. The deductibility of the bag will depend on: Cost – It's easier to justify to the ATO that a $300 bag is for work purposes than a $10,000 Prada bag. Type – Large bags…

Read More »

Travel to co-existing work location 

15 September 2020

Co-existing work locations travel involves travel which can be attributed to the employee having to work in more than one location. This is the case where: The travel is directly between work locations, or between home and an alternative work location, and It is reasonable to conclude that the travel is undertaken in performing the…

Read More »

Similar posts you may like

"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

- Bono: U2