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The following outlines common types of deductible expenses claimed by individual taxpayers, such as employees and rental property owners, plus some strategies that can be adopted to increase deductions for the 2014/15 income year. 1. Depreciable plant, etc, costing $300 or less Salary and wage earners and rental property owners will generally be entitled to...

Many of our business clients like to review their tax position at the end of the income year and evaluate any year-end strategies that may be available to legitimately reduce their tax. Traditionally, year-end tax planning for small businesses is based around two simple concepts – i.e., accelerating business deductions and deferring income. However, Small...

Non-SBE business taxpayers should endeavour to maximise deductions by adopting one or more of the following strategies: • Prepayment strategies; • Accelerating expenditure; and • Accrued expenditure.

Any part of an expense prepayment relating to the period up to 30 June is generally deductible. In addition, non-SBE taxpayers may generally claim the following prepayments in full: – expenditure under $1,000; – expenditure made under a ‘contract of service’ (e.g., salary and wages); or – expenditure required to be incurred under law. Prepayments...

This is where a business taxpayer brings forward the expenditure on regular, on-going deductible items. However, business taxpayers are generally entitled to deductions on an ‘incurred basis’. Therefore, there is generally no requirement for the expense to be paid by 30 June 2015. As long as the expense has genuinely been incurred, it will generally...

Non-SBE taxpayers (and some SBE taxpayers) are entitled to a deduction for expenses incurred as at 30 June 2015, even if they have not yet been paid. The following expenses may be accrued: • Salary or wages and bonuses – the accrued expense for the days that employees have worked but have not been paid...

Deductions can be maximised for SBE business taxpayers by accelerating expenditure and prepaying deductible business expenses. Former STS taxpayers who have continued to use the STS cash method since before 1 July 2005 cannot accrue expenses, but other SBE taxpayers on an accruals basis can accrue expenses (see above regarding accruing expenditure).

Former STS taxpayers who have continued to use the STS cash method since before 1 July 2005 and who qualify as an SBE are generally only entitled to deductions if they have paid the amount by 30 June. All SBE taxpayers can choose to write-off depreciable assets costing less than $1,000 in the year of...

This is some of the information we will need you to bring to help us prepare your income tax return: Stocktake details as at 30 June. Debtors listing (including a list of bad debts written off) as at 30 June. Note: In order to claim a deduction, the debt must be written off on or...

The following articles outline key announcements of the May 2015 Federal Budget.