Tax Tip Tuesday: Best Tax Tips for Small Businesses to Minimise Tax

Maximise Super Contributions – Use the Cap

$30, 000 for people aged 18-49 as at 30 June 2014. $35, 000 for those 50 and above. Caps will remain the same in the 2015 year.

Super guarantee is included in these caps. So do not exceed the limits as 46.5% tax will apply.

Superfund must receive contribution by 30 June 2015 (Pay employees super by 30 June 2015 to get a tax deduction).

Consider if a SMSF is for you if you don’t have one. Compulsory Super is 9.5% of Ordinary Times (Fixed for 4 years).

Depreciation Write-Off Items

Depreciation Write-Off items up to $1000 for SBE’s.

Look to buy as many small items as you can to write off immediately.

Tools of Trade FBT Exempt Items

Includes handheld portable tools of trade, computer software, notebook laptops, electronic organisers, digital cameras, briefcases, mobile phones.

Immediate Salary sacrificed deduction available.

Defer Income

Put of sending out invoices that won’t be paid before 30th June until July.

Where practical, defer issuing further invoices and or receiving cash/debtor payments until after 30 June 2015.

Bring Forward Expenses

Purchase all consumable items before the end of the financial year such as stationery. Consider repairs to items.

Defer CGT

If looking at selling a property in next three month that would be subject to a gain. Defer contract date to after 1 July 2015. It allows you an extra year to have more time to prepare for the planning of the capital gains tax situation.

Consider Updating the Business Motor Vehicles

15% immediate deduction available if installed by 30th June 2015. Then 30% in the following financial year.

Prepayment Ideas

Consider prepaying something that will work tax effectively (up to 30 June 2016 period – 12 months).

E.g. you could buy some shares and prepay the interest on the loan before 30 June 2015 for 12 months. Prepay Rent for 12 months. Prepay travel expenses, Prepay subscriptions.

Look at effective Salary Sacrificing Arrangements before starting the next financial year

This could be salary packaging a motor vehicle (Can save $1,500 per year), salary packaging otherwise deductible course fee, salary packaging otherwise deductible rental property deductions such as interest, rates, insurance & water. If the government starts outlawing negative gearing – you can at least say you were ready.

Our best tip is to Review Your Estate  Planning Affairs

Having a will, enduring power of attorney and a proper estate plan we believe is crucial.

Yet 40% of people do not have a will and 80% do not have an effective written plan if something were to happen.

CTBS along with our Estate Planning team can help you on the right track.

Doing this properly will definitely save you tax and heartache.