ARTICLES & INFO
Tax & GST

5 Tax Tips for SMEs

8
Mar

5 Tax Tips for SMEs

Friday, March 8, 2019

With a federal election most likely to hit in May, a plethora of SME tax policies from both parties, and even more STP compliance to come, this year is shaping up to be hectic.

With legislation now in place to extend single touch payroll (STP) reporting to businesses with fewer than 19 workers, technically everyone will be required to comply with STP reporting by July 1, 2019, which gives hundreds of thousands of businesses just a few months to get on board.

This real-time reporting is generally done through accounting software platforms such as MYOB, Xero or Quickbooks - but if you don’t currently use digital payroll - don't worry, you aren’t the only one. There's still time to get your act together - but today (rather than tomorrow) is the time to act.

Secondly, if you haven't got your 2018 affairs in order - DO IT!

In reality, February or March is all about looking at your 2019 tax and knowing where it’s heading - then making plans for 2019/20 to ensure you're ahead of the curve (and your competition).

Next, don't forget the $20,000 instant asset write-off has been extended to 30 June 2019

This means you can continue to claim the cost of new or second-hand assets that are less than the threshold of $20,000 if your business has a turnover of less than $10 million. Not sure what you can claim? Give the ATO a call or contact us directly.

If you're a small business, remember you can claim the small business income tax offset which can reduce the tax you pay by up to $1,000 if you:

* are a small business sole trader, or

* have a share of net small business income from a partnership or trust

Finally, if you're living off the land, enquiry about 'tax averaging' which enables primary producers to even out their income and tax payable over a maximum of five years to allow for good and bad years.

Posted on:

Friday, March 8, 2019

in

Tax & GST

category

The Blog