National Brokers Network

Tax Tips for Small Business for End of Fiscal Year 2018

It’s the moment of truth. Australian accountants are now on the watch on who’s on the other side of the line every time the phone rings. Well, it’s because it’s that time of the year again: tax time. Lucky for a handful of business, they’re already prepared to face the end of the financial year without that much stress. However, there are a majority of taxpayers in panic mode, scrambling to collect the necessary requirements and rummaging the internet for answers on tax deductions that can be claimed before the deadline draws nearer and nearer.

In order to alleviate the massive pressure this could bring, business brokers victoria have compiled tips on how to face the last days of the end of a fiscal year and make things organized before the dreaded deadline.


Tip #1: Claim your $20,000 instant asset write-off

Even though it’s still not a permanent staple in the law, it is being continuously renewed for a 12-month basis and, fortunately, small and medium enterprises (SME) are included in the eligible receivers. Before the looming deadline comes to pass, business owners should make sure to claim their asset write offs of up to $20,000 worth of assets for their businesses.

Basically, a business owner can purchase an asset and claim their deduction for the business portion. This is perfect for self-employed business owners in need of tools, cars, and other assets to improve the business.


Tip #2: Pay attention to deductions

Tax agents always recommend for businesses to claim their deductions during tax time, particularly SMEs. The deductions can be applied to a number of expenses, like rent, utilities, and repairs done with the business. Advice sought is also included, which can be professional, legal or accounting. However, before getting deductions, make sure business owners can justify each expense presented.

In the case that the business is unincorporated, there’s a chance to become eligible for the small business income tax offset, which can provide a deduction of up to $1000 from the tax bill as long as the business’ revenue is below $5 million. As of the present time, the offset is around 8 per cent, but may increase in 2027, which is said to be 16 per cent.


Tip #3: Get a better understanding of tax changes

In terms of the CGT changes, a business owner should be aware that not only they should be able to pass the $6 million net asset test wherein the total net assets should be below $6 million, the business itself should also pass the said test.

On the other hand, there are changes to the company tax rate. For small businesses, there will be a 2.5 per cent to 27.5 per cent cut in tax rate with a turnover of under $10 million, and may change to up to $25 million. Businesses should be well aware of the changes to avoid of passing of the opportunity to get write offs and tax offs.

Confidentiality Agreement

In Consideration of the Vendor of the subject business, or any other business introduced to the Proposed Purchaser and their agent National Brokers Network (“the agent”) providing information to the Prospective Purchaser, the Prospective Purchaser agrees:

1. To keep all information provided confidential in respect to the subject business and any other business introduced to the Prospective Purchaser by the Agent.
2. That no information is to be disclosed by the Prospective Purchaser to any third party without consent by the Agent;
3. That it will not use for themselves. Or for others benefit, such information other than to Purchase the subject business or other business introduced by the Agent;
4. That any agreement to purchase the whole or portion of the business shall be exclusively through the Agent;
5. To immediately return to the Agent all such information and other details in written form including any drawings and any copies made of written information, notes, summaries or extracts of any document therefor if any when requested by the Agent;
6. Under no circumstances will the Prospective Purchaser make direct contact with the vendor of the subject business or other introduced business without the prior written consent of the Agent;
7. If the Prospective Purchaser breaches this agreement or buys the business direct from the Vendor, the Prospective purchaser is liable to and indemnifies the Agent for any and all losses the agent may incur including economic loss and loss of income.v

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