Wrapping your head around taxation is a favourite pastime of few – which is why we have you covered in the lead up to tax time. Starting this week, Craig Toyne from Rethink Financial is sharing the latest tax tips, expertise and ways to use your trade dollars in the lead up to June 30.
The best form of tax planning is done well before 30 June. Setting up the best business structures and splitting your income up across the best tax rates reduces the overall tax you pay. Your accountant may recommend structures that include companies, trusts and self-managed superannuation funds and if your accountant is a Bartercard member you gain the advantage of paying his professional costs using your Bartercard trade dollars.
Small business boost
Take advantage of the ATO’s accelerated depreciation for small businesses and claim an immediate deduction on assets purchased up to a value of $20,000*. As a small business with a turnover of less than $10 million, you can purchase equipment costing less than $20,000 and receive an instant tax write off.* However, be quick as this incentive finishes on 30 June, 2018.
Trading tip: This is a double win for Bartercard members who can make purchases using trade dollars not cash, and will receive the benefits of 100% deductions for items costing up to $20,000 at the same time, which they will receive back in cash.
*Bartercard Australia recommends you seek financial advice from your accountant to confirm you qualify for the Australian ATO accelerated depreciation offer.
Small businesses can claim a deduction for expenses prepaid for a period of no more than 12 months.
Trading tip: By paying any outstanding invoices or stocking up on essential items like equipment and stationery before June 30, you can reduce your taxable income by bringing forward tax-deductible items to this financial year. Conserving your cash flow on essential products and services by using Bartercard allows you to claim the tax-deductible depreciation off the price tag and keep more money in the bank.
Gift vouchers and accommodation packages
In addition to paying outstanding invoices and stocking up on essential items to reduce your taxable income, why not also purchase value-added items on trade like accommodation packages and gift certificates on trade? These can be used as part of your marketing activities and as a value-add in your business to entice new customers and encourage repeat or referral business. Bartercard stocks plenty of gift vouchers and accommodation certificates at a range of businesses and destinations to choose from – visit mybc.bartercard.com and start shopping.
Tax deductible expenditure
Tax deductible expenditure that you can make before 30 June which brings you future benefits or income, are a great idea. Such expenditure includes repairs, depreciating assets up to $20,000, training, advertising, coaching and professional advice. Many of these can be purchased through Bartercard.
Trading tip: Visit the Bartercard Members Directory to see where you can spend trade dollars in lead up to June 30th. Bartercard has members across almost every industry to spend at in order to receive the tax deductible depreciation off the price tag, and keep more money in the bank. Visit mybc.bartercard.com and click on Directory then Search.
Extra tip: Instead of writing off or heavily discounting excess or slow-moving stock to sell it before the EOFY, use Bartercard as a clearing house. By selling excess stock through Bartercard, you can receive trade dollars as payment and then in turn spend the trade dollars on more productive products and services to use in the business.
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This is general advice only – please seek specific advice for your own circumstances from your own professional advisor.
This information is applicable up to 30 June 2018.