Top 5 Tax Considerations for Small Business in 2015


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We’re coming to our most favourite time of year! Tax time! (Not really, but as accountants most people generally assume we’re pedal to the metal).

But at 542 it’s pretty much business as usual. We’ve been discussing tax planning with our clients over the past 12 months. Sure, we’ll give them a gentle reminder to pay super contributions before 30 June, including any additional super contributions for the year, but really it’s just like any other quarter.

June 30 is still a great time of year. Check out our top June 30 considerations for small businesses below.

  1. Review current systems

We love systems and processes. And when it comes to nailing down the right processes for your business accountants are a great source of information. Having the right processes for things like time-sheeting, POS receipts and invoicing can not only save you time but bucket loads of money in the long run. And June 30 is a perfect time to ditch the excel spreadsheets and labour intensive processes and automate.

We blogged about How to save time and money FAST: Business Process Automation back in July.

  1. Review business structure

If you’re forecasting growth or substantial change for the new financial year, consider your business structure. Different business structures have different tax responsibilities, so weigh up the different options and decide what business structure is right for your situation.

Check out our blog Business structures: 4 things every business owner should know for more information on business structures.

  1. Interest prepayments for which you can claim immediate deductions

As long as the service period is not more than 12 months, eligible businesses can claim immediate deductions for interest prepayments.

  1. Capital gains tax (CGT) concessions

You may be eligible for a range of CGT concessions, which can provide substantial tax savings. These concessions will be available if you have disposed of active assets in the current financial year, or you are looking to dispose of an active asset. To be eligible for the CGT concessions, your business must qualify as a small business entity or have net assets of $6 million or less.

  1. Change your pay as you go (PAYG) instalments

Small business owners should review their PAYG instalments and notify the Australian Taxation Office (ATO) if the expected profit for this financial year is lower or higher than previous years, so instalments can be adjusted accordingly.

For further information on how to maximise tax benefits for your business, talk to us.

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