The tax-time deadline is looming over us and the end of financial year is within the week. Have you invested in stocks, shares or superannuation this year or perhaps you own a small business? Crowe Horwath have released a number of vital points which they recommend considering to maximise your return this year.
Did you purchase any depreciating assets or motor vehicles?
There are some concessional depreciation rules specific to this financial year and can be generalised as follows –
- If you used any assets before 31 December 2013 costing less than $6,500 and are deprecating in value (such as a business vehicle or equipment), these can be written off. Any depreciating assets after this date must have cost less than $1000.
- Depreciating assets which are not motor vehicles and costs greater than $6,500, first used before 31 December 2013, may be written off in a depreciation pool of 15% the first year, and 30% the years thereafter. After this date, only the first $1000 may be written off, with the same percentages applying.
Is a trust part of your business structure?
If you have chosen to have a trust as your entity structure, you must ensure that you appoint or distribute income to the beneficiaries effective 30 June 2014. This means you need to plan ahead and act now if you have not yet as there is documentation and tax considerations to apply prior to 30 June.
What will the ATO be focusing on this year?
The ATO always announces a few focal points for their review, this year they will be keeping a close eye on:
- Reviewing small businesses
- Checking payments made to contractors in the building industry
- GST on property sales
- Business transactions taking place across borders
- Capital Gains Tax small business concession eligibility on the sale of business use assets
It is important that if you have any uncertainty or queries relating to tax or auditing to contact your accountant. Making the wrong claim or deduction can sometimes lead you to unknowingly breaking rules set by the ATO and can be very costly.
Advice Warning Elliott Insurance Services are not tax advisors or accountants. The advice given above is of a general nature and if you are seeking specific professional tax advice please see a licensed accountant who can tailor advice to your individual tax needs.
You can also find more information on the ATO website. We thank Crowe Horwath for the information they have provided.
