Tax Tips for the New Changes
Here are 7 Tips to help you make the most of depreciation changes that the government have introduced.
- Consult with an accountant. There are a few pitfalls that you need to be aware of and make sure that your investment is eligible.
- Buy equipment that will help grow your business. If you are constrained, make sure you are getting the biggest return on your investment that you can.
- Look at a Chattel mortage to assist with cash flow. Get the GST back in your next BAS and then the refund for the depreciation when you file your annual tax return. This is a very cash flow friendly way to purchase equipment.
- Bring forward purchases you were going to make soon anyway. If you were already going to spend the money, bringing it forward means you can depreciate more of it up front.
- Market the tax breaks to your customers. If you are in a B2B industry, some of your customers may not know about the benefits they could be missing out. Let them know!
- Plan on when to file your tax. If you are expecting a big refund, file early. The ATO doesn't pay interest on tax returns so get in early.
- Ensure your asset register is up to date, so you can provide proof of what to claim and you know when equipment was purchased, and keep the paperwork. This all makes it easier at tax time.
These 7 tips will help you make the most out of the Small Business Tax breaks for your business!
Read more 2009 tax tips here.