SMALL BUSINESS INCENTIVES

SMALL BUSINESS INCENTIVE EXTENDED

Small businesses can claim an immediate deduction for eligible business assets costing less than $20,000 each, purchased from 12th May 2015 to 30th June 2019.

My suggestion to small business owners is:

If you need new business assets which cost less than $20,000 each, and you can afford to, and you are paying tax, purchase new eligible items before 30th June 2018 to claim the deduction in this financial year.

Make sure you can substantiate ALL of your tax deduction claims.

Please contact me if you need assistance.

BUSINESS ANALYSIS

Analysing trends to improve business

Analysing your business performance is valuable if you take action to improve your business results, however one trend by itself, is not that useful. 

If, for example, your employee wages are trending upwards, you need to also look at turnover and profit; and then analyse the ratios of wages to profit. Doing financial calculations, and analysing ratios will allow you to step back from the day to day operations of your business and look at the overall business performance.

Remember, it is only useful if you act on the results.

Please contact me if you need assistance.

CONTRACTORs under the ATO’s radar

Contractors will be targeted to ensure that they are not really employees in the eyes of the ATO. Whether a worker is an employee or a contractor depends on the working arrangement and specific terms and conditions under which the work is performed. Factors to consider:

  • • Control over work–Contractors can exercise their own discretion how their services are performed unless specified in their contract
  • • Independence-Contractors perform only the services as specified in their contract
  • • Payment-Payment is dependent on the performance of the contracted services
  • • Commercial risks-Contractors bears legal risk in respect of their work and must remedy defects at their own cost
  • • Ability to delegate-Contractors can subcontract or delegate their work
  • • Tools and equipment-Contractors provide their own tools/equipment

Employers-make sure you categorise and pay your workers correctly.

Please contact me if you need assistance.