Minimising Tax for Small Business Entity (SBE) taxpayers (turnover under $10m)
1. Accelerating Asset expenditure
All SBE taxpayers can choose to write-off depreciable assets costing less than $30,000. Also, assets costing $30,000 or more are allocated to an SBE general pool and depreciated at 15% (which is half the full rate of 30%) in their first year. Note that the asset must be installed and ready for use by 30 June 2019 to be deductible.
2. Prepayment strategies
SBE taxpayers making prepayments before 1 July 2018 can choose to claim a full deduction in the year of payment where they cover a period of no more than 12 months (ending before 1 July 2020).
The kinds of expenses that may be prepaid include:
3. Employee Superannuation – Pay before 30/06/2019
Employee Superannuation accrued for the 4th quarter of the 2018/2019 Tax year isn’t due until the 28th July 2019. But Super is only deductible once paid, not accrued. So by paying 4 weeks earlier you get the tax benefit 12 months earlier.
This is some of the information we will need you to bring to help us prepare your income tax return: