Instant write-off for assets over $30,000

From 2nd April 2019, the instant asset write-off threshold increased to $30,000 (prior to this, it was $25,000).

This means that if your business purchases an asset that costs less than $30,000 (net of GST), you can claim an immediate deduction for it, instead of depreciating the asset over it’s useful life.

With the end of financial year approaching, now is a good time to have a think about whether your business needs new assets or replacement of old assets. Consider if the timing is right - look at your business profit - is it higher than expected? If you have extraordinary profit this year, it might be a good idea to utilise this tax concession in order to save your business some tax this year.

More information about the instant asset write-off can be found here.


Closely-Held Entities & Available Cash

Closely-Held Entities & Available Cash

Closely-held entities are businesses that only pay salaries to associates of the business. Examples of associates include the directors and shareholders and their relatives. If your business is a closely-held entity, your reporting requirements for STP and PAYG is slightly different to businesses with arms-length employees (or “external employees”).

Single Touch Payroll

Single Touch Payroll

Single Touch Payroll (STP) will be mandatory for all employers from 1st July 2019 (previously it was only applicable to businesses with 20 or more employees).

If you are a business owner, you need to be ready. It is a good idea to get it set up now so that you are compliant by 1st July. However, ATO has confirmed that they will be lenient toward small businesses during the initial transition to STP.

Maximising Your Refund

Maximising Your Refund

For anyone who has lodged a tax return before, whether DIY or through an agent, you know that the best way to maximise your tax refund is to claim as many deductions as possible. And in order to claim a deduction, you need 2 things - Substantiation and Nexus to the income earning activity (unless there is an exemption under a tax ruling, for example, donations or tax return fees).

Digital signature

Digital signature

Are you still printing and scanning documents?

Did you know that in many circumstances, a digital signature is just as valid as a hard copy? In my daily work life, I frequently have to send documents to clients to sign, and this can be a daunting and inconvenient process for individuals who don’t have a printer, scanner or fax machine. Going to the post office is time consuming and costly. The fastest and easiest way to get your document signed (and your returns lodged and processed as soon as possible) is to use a digital signature.

ATO's war on deductions

ATO's war on deductions

The ATO has recently adopted a very aggressive strategy to collect more tax revenue. Earlier this year, they sent out hundreds of thousands of letters to taxpayers, warning them that their deductions may have been overstated, and advising to review their claims in order to avoid paying back tax and being penalised in the event of an audit. Many taxpayers saw this letter as a precursor to an audit, despite the letter stating that if the taxpayer believes deductions were claimed correctly, they need not take any further action.