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2023 FEDERAL BUDGET SUMMARY

In broad terms there is to be a surplus of $4.2bn however an underlying cash deficit of $13.9bn. Australia’s growth is estimated to slow to 3.25% in 22/23 to 1.5% in 23/24, with a recovery to 2.25% in 24/25

Inflation is expected to fall to 3.25% in the 23/24 year and further to between 2-3% in the 24/25 year

Here are some highlights from the budget.

Personal Tax

  • Stage 3 Tax Cuts – there were no tax rate changes for personal tax. The stage 3 tax cuts are still to be implemented from 1st July 2024 with the 32.5% tax rate being reduced to 30% for incomes between $45k to $200k, with the 37% tax bracket being totally removed
  • Medicare Levy (ML) Thresholds – the ML have been increased across all categories

 

Small Business

  • Instant Asset Write-off Threshold – this is set at $20k (up from $1k). This removes the Covid measure of unlimited amount for an asset write off being fully deductible. Assets greater than $20k can be deducted at 15% in the first year and 30% in subsequent years.
  • Small business Energy Incentive – businesses will be able to claim an additional 20% deduction on spending that supports electrification and more efficient use of energy.
  • Amall business lodgement penalty amnesty – Small businesses with aggregate turnover of less than $10m will be given an amnesty which will remit failure-to-lodge penalties for outstanding tax statements lodged in the period from 1 June 2023 to 31 December 2023 that were originally due between 1 December 2019 to 29 February 2022.
  • PAYG and GST instalment uplift factor – The GDP uplift factor will be set at 6% (rather than 12% as would otherwise apply under the statutory formula) for instalments with respect to the 2023-24 income year that fall due after the measure is legislated.

Business Taxation Measures

  • Build-to-rent properties – For eligible new build-to-rent projects from 9 May 2023, the rate for the capital works tax deduction (depreciation) to 4% per year
  • FBT rules for electric vehicles – The Government confirmed that plug-in hybrid electric cars will not be eligible for the FBT exemption for electric cars from 1 April 2025

 

Superannuation

  • Super account balances above $3m – despite pushback from industry, the Government has confirmed its intention to apply an extra 15% tax on total superannuation balances above $3 million from 1 July 2025, including in relation to defined benefit schemes. No further details were released so it is expected the proposed changes will operate as previously announced (ie, unrealised gains will be subject to the extra 15% tax).
  • Payday super – employers will be required to pay their employees’ super guarantee at the same time as their salary and wages from 1 July 2026
  • Pension drawdowns: no reduction in minimum – the Budget did not announce a further extension to 2023-24 of the temporary 50% reduction in the minimum annual payment amounts for superannuation pensions and annuities.

 

Please feel free to share to any person you may think may benefit If you need any assistance, please get in contact with us at

 stephen@smbaccounting.com.au

 P 1300 854 159

 

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Reduce Your Tax Bill: Don’t Miss These Deductions

As an Australian taxpayer, you want to avoid paying more taxes than necessary. One way to minimise your tax bill is to take advantage of all the deductions available. So before talking with a tax consultant, here are some deductions you want to take advantage of.

1. Work-Related Expenses

Work-related expenses are expenses incurred while performing your job duties. If you have spent money on work-related expenses, you may be eligible to claim them as a deduction on your tax return. These expenses include uniforms, tools, equipment, and other items necessary for your job. 

However, not everything is eligible for a deduction, so reviewing the ATO guidelines before making a claim is important. Ensure you keep proper records of your expenses throughout the year, as you may need to provide evidence to support your claim.

2. Home Office Expenses

Some people in Australia are navigating the world of working from home due to the COVID-19 pandemic. If you work from home, you can ask for home office expenses as a deduction on your tax return. These expenses include electricity, internet, phone bills, and a portion of your rent or mortgage interest.

To be eligible for a home office expense deduction, you must establish a dedicated workspace in your home that is used exclusively for work purposes. You must also show that the expenses you claim are directly related to your work.

3. Charitable Donations

Donating to charities is a good way to give back to your community and support serious causes. It can also be a tax-deductible expense, which means you can cut your taxable income and potentially receive a refund from the government.

To declare a deduction for charitable donations, you must have donated to an eligible charity or organisation. You must keep records of your donations, such as receipts or bank statements, to support your claim.

4. Self-Education Expenses

If you are undertaking education or training related to your current job, you may claim self-education expenses as a rebate on your tax return. These expenses include course fees, textbooks, and travel expenses related to attending classes.

However, ensure that your education or training is directly related to your current employment and not to a new career or profession. Additionally, you cannot claim self-education expenses if your employer has already reimbursed you for these costs.

5. Travel Expenses

There are instances where you can claim travel expenses as a tax deduction. This includes travel for work-related purposes, such as attending conferences, meetings, or training courses. You can also claim travel expenses if you are required to travel between different work locations or if you need to travel to meet with clients or suppliers.

Final Thoughts

Taking advantage of all the deductions available is a great means to minimise your tax bill. By working with a tax consultant or accounting firm, you can ensure that you are claiming all the deductions you are entitled to and doing so correctly. So don’t miss out on these deductions—they can spare you a lot of money in the long run.

Get your finances in order with SMB Accounting’s expert services. Streamline your business operations and maximise profits with our tailored solutions. Contact our accounting firm in Sunshine Coast today!

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5 Tax Facts Small Business Owners Need to Know

Small business owners have much to consider, from managing employees to keeping track of inventory. One of the most critical aspects of operating a small business is ensuring you stay on top of your taxes.

As a small business owner, you must appreciate your tax obligations to avoid legal or financial consequences. Failing to comply with small business tax laws can result in hefty fines, penalties, and legal action, harming your business’s financial health. 

Understanding your small business tax obligations also allows you to plan and budget accordingly, ensuring you have enough funds to pay your taxes when they are due.

By keeping up with your tax obligations, you can focus on managing your business and achieving your goals without worrying about potential tax issues. Here are five tax facts that small business owners need to know.

2. Keep Good Records

One of the smartest things you can do as a small business owner is to keep good records. This means keeping track of all your income and expenses, as well as all your receipts and invoices. This will make it much easier when it comes time to file your taxes.

Keeping your business and personal finances detached is also a good idea. This will make recording your business expenses and deductions easier and help you avoid any potential tax issues.

2. Deductible Expenses

As a small business owner, you can subtract many operating costs from your taxes. These include office expenses, travel expenses, and even certain entertainment expenses.

It’s important to remember that not all expenses are deductible. For example, you cannot deduct personal expenses like groceries or clothing. Ensure you understand which expenses are deductible and keep good records of them.

3. GST

If your small business has an annual income of $75,000 or more, you must register for the Goods and Services Tax (GST). This is a tax of 10% accumulated on top of the price of goods and services in Australia.

Once you register for GST, you must regularly charge your customers this tax and remit it to the Australian Taxation Office (ATO). You will also be able to reimburse any GST that you have paid on business expenses.

4. PAYG Instalments

Another important tax fact for small business owners is PAYG instalments. You make these payments to the ATO throughout the year to cover your expected income tax liability.

The amount of your PAYG instalments is based on your estimated income for the year. You will need to make these payments regularly, either monthly or quarterly.

5. Superannuation

Superannuation is another important tax consideration for small business owners. If you have employees, you must make super contributions on their behalf.

The super you must pay is based on the Superannuation Guarantee (SG) rate, 9.5% of an employee’s ordinary time earnings. You will need to make these payments regularly because failure to do so can end in penalties and interest charges.

It’s also important to remember that you can claim a tax deduction for your super contributions. This can reduce your tax liability and benefit your employees.

Conclusion

As a small business owner, keeping up with taxes is important. By keeping good records, understanding which expenses are deductible, registering for GST, making PAYG installments, and paying superannuation, you can ensure that you meet your tax obligations and keep your business on the right track. Speak to a tax professional or auditor in Brisbane for more information on small business taxes and how to manage them effectively.

Looking for expert advice on managing your small business taxes? Contact SMB Accounting today and speak to our team of experienced Sunshine Coast accountants. We can help you navigate the complexities of tax law and ensure that you are meeting all of your obligations as a small business owner. Don’t wait until tax time – get in touch with us now and start planning for a successful financial future.

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Maximising Profit: Why Businesses Need Tax Advisors to Navigate the Complex World of Taxation

As a business owner, you have a lot on your plate. You focus on growing your business, managing employees, and serving customers. With all this on your mind, it’s easy to overlook the importance of taxes. However, taxes are critical to running a business, and finding the right tax advisor can help you navigate this complex area. This article will explore why companies need to find tax advisors and how they can help your business succeed.

Expertise in Tax Law

Tax law is complex, and it’s constantly changing. As a business owner, staying current on the latest tax laws and regulations is essential. However, for most business owners, this is easier said than done. Tax advisors are tax law experts who deeply understand the tax system’s complexities. They can help you navigate the ever-changing tax landscape and comply with all relevant laws and regulations.

Minimising Tax Liability

No business owner wants to pay more in taxes than they need to. Tax advisors can help you minimise your tax liability by identifying deductions and credits that you may be eligible for. They can also help you structure your business to minimise your tax burden. By working with a tax advisor, you can ensure that you’re paying the lowest taxes possible, which can help your business succeed in the long run.

Avoiding Tax Penalties

Failing to comply with tax laws and regulations can result in significant penalties and fines. Tax advisors can help you avoid these penalties by complying with all relevant laws and regulations. They can also help you prepare and file your tax returns accurately and on time, which can help you avoid penalties and interest charges.

Strategic Tax Planning

Tax planning is a critical part of running a successful business. Tax advisors can help you develop a tax strategy that aligns with your business goals and objectives. They can help you plan for major business events, such as mergers and acquisitions, and ensure you’re prepared for potential tax implications. By working with a tax advisor, you can develop a tax strategy that helps your business succeed in the long run.

Improved Financial Management

Tax advisors can also help you improve your financial management. Working with a tax advisor, you can better understand your business’s financial situation. They can help you identify areas where you can improve your financial performance and provide insights into your business’s financial health. This can help you make better financial decisions and position your business for long-term success.

Reduced Stress and Time Savings

Managing taxes can be stressful and time-consuming. Working with a tax advisor can reduce your stress levels and save time. Tax advisors can handle all aspects of your tax preparation and filing, allowing you to focus on running your business. They can also provide you with guidance and support throughout the year, which can help you stay on track and avoid last-minute tax surprises.

To Sum Up

In conclusion, finding the right tax advisor is essential for businesses of all sizes. Tax advisors can provide expertise in tax law, help you minimise your tax liability, avoid tax penalties, and develop a strategic tax plan. They can also help you improve your financial management, reduce stress, and save time. By working with a tax advisor, you can position your business for long-term success and ensure you comply with all relevant tax laws and regulations. If you’re a business owner, consider finding a tax advisor today and see how they can help your business succeed.

Do you need the help of the top tax advisors? SMB Accounting handles small business accounting, individual tax returns, SMSF audits, and more. Get in touch with us.

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Maximising Tax Deductions: 6 Types Small Businesses Can Take

As a small business owner in Australia, understanding the tax deductions available to you can have a significant impact on your bottom line. By claiming certain expenses against your taxable income, you can reduce the amount of tax you need to pay, which helps you keep more of your hard-earned money.

Today, we will discuss the various types of tax deductions that small businesses in Australia can take advantage of. Remember, it’s always a good idea to seek professional advice from a tax specialist, accountant, or financial planner to ensure you’re making the most of your deductions and staying compliant with the Australian Taxation Office (ATO):

1. Operating Expenses

Operating expenses are the costs associated with running your business day-to-day. These expenses are usually tax-deductible, which means you can claim them against your taxable income. Some common examples of operating expenses for small businesses include:

  • Rent for your office or retail space
  • Utilities, such as electricity, water, and internet
  • Office supplies, like pens, paper, and printer ink
  • Accounting and legal fees
  • Advertising and marketing costs

Keep in mind that these expenses must be directly related to your business operations to be deductible. Personal expenses that aren’t related to your business are not deductible.

2. Depreciation of Assets

As a small business owner, you likely have assets that you use to generate income, such as equipment, vehicles, or computers. Over time, these assets lose value due to wear and tear, and this loss of value is known as depreciation. You can claim this depreciation as a tax deduction.

In Australia, small businesses can use the simplified depreciation rules under the Instant Asset Write-Off scheme. This allows you to immediately deduct the cost of eligible assets up to a specific threshold in the year they are purchased and installed for use. Be sure to check the ATO website for the current threshold amount and eligibility requirements.

3. Employee Expenses

If you have employees, you can generally claim tax deductions for the expenses related to their employment. Some of these expenses include:

  • Wages and salaries
  • Superannuation contributions
  • Fringe benefits, such as company cars or health insurance
  • Workers’ compensation insurance premiums
  • Training and development costs

Remember to keep accurate records of these expenses, as the ATO may require you to prove your claims if they conduct an audit.

4. Business Travel Expenses

When you or your employees travel for business purposes, you may be able to claim deductions for related expenses. This can include:

  • Airfare, train, or bus tickets
  • Accommodation costs
  • Meals and incidental expenses
  • Car hire or mileage costs for using your personal vehicle

Keep in mind that only a portion of the expenses related to business activities is deductible. If the trip includes personal activities, you’ll need to apportion the expenses accordingly.

5. Home Office Expenses

If you run your business from home or have a dedicated home office, you may be eligible to claim deductions for home office expenses. These can include:

  • A portion of your rent or mortgage interest
  • A portion of your utility bills
  • Depreciation of office furniture and equipment
  • Office supplies and stationery

To claim these deductions, you’ll need to calculate the percentage of your home that is used for business purposes and apply that percentage to your expenses.

6. Research and Development (R&D) Tax Incentive

The Australian government offers a tax incentive for businesses that invest in eligible R&D activities. This incentive provides a tax offset for a portion of your R&D expenditure, which can help reduce your overall tax payable. To be eligible for the R&D tax incentive, you must:

  • Be a company incorporated in Australia
  • Have R&D activities that are eligible under the program guidelines
  • Have R&D expenditure that meets the minimum threshold

Consult a tax specialist or the ATO for more information on the R&D tax incentive and how to apply.

Conclusion

Understanding and taking advantage of the various tax deductions available to small businesses in Australia can be crucial for improving your bottom line. So, be sure to consult with a tax professional or accountant to ensure you’re claiming all the deductions you’re entitled to and complying with the ATO’s requirements. By doing so, you can effectively manage your tax obligations and keep more of your hard-earned money in your pocket!

SMB Accounting offers a variety of accounting services to help individuals and businesses stay on top of all their accounting needs. If you are looking to maximise your tax deductions, work with us today!

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Should You Hire an Accountant For Your Tax Return?

Lodging tax returns is a requirement for every individual and business entity. It is a legal obligation that must be fulfilled annually. However, preparing and lodging tax returns can be daunting, especially for those who need to be better versed in accounting and taxation. This is where the services of an accountant come in.

In this article, we will explore why you should hire an accountant for your tax return.

Expertise in Taxation

Accountants are professionals who have undergone rigorous training and education in accounting and taxation. They possess in-depth knowledge of tax laws and regulations, making them well-equipped to handle tax returns. They are also up-to-date with the latest changes and updates in tax laws, ensuring that your tax return is accurate and compliant with regulations.

Saves Time

Preparing and lodging tax returns can be a time-consuming process. It requires gathering and organising financial documents, analysing financial data, and completing various tax forms. 

For individuals and business owners with a lot on their plate, outsourcing this task to an accountant can save them significant time. Accountants are trained to handle tax returns efficiently, allowing you to focus on other essential tasks.

Minimizes Errors

Lodging an incorrect tax return can be costly. It can result in penalties, fines, and even legal action. Accountants are trained to minimise errors and ensure your tax return is accurate. They have a keen eye for detail and are well-versed in identifying errors and inconsistencies in financial data. 

By hiring an accountant, you can rest assured that your tax return is error-free and compliant with regulations.

Maximizes Tax Savings

One of the main benefits of hiring an accountant for your tax return is the potential for tax savings. Accountants are trained to identify tax deductions and credits you may be eligible for. 

They can also advise how to structure your finances to minimise tax liability. By taking advantage of these tax-saving strategies, you can save thousands of dollars in taxes.

Reduces Stress

Tax season can be stressful for many individuals and business owners. The pressure of meeting deadlines, gathering financial documents, and completing tax forms can be overwhelming. By outsourcing this task to an accountant, you can reduce your stress levels and have peace of mind knowing that your tax return is in good hands.

Provides Audit Support

In the event of an audit, having an accountant on your side can be invaluable. Accountants are trained to handle audits and can provide guidance and support throughout the process. 

They can help you gather the necessary documents and information and represent you in front of the IRS or state tax agency. By hiring an accountant, you can minimise the stress and anxiety of an audit.

Conclusion

So, should you hire an accountant? The short answer is yes. Hiring an accountant for your tax return can provide many benefits. They possess expertise in taxation, save time, minimise errors, maximise tax savings, reduce stress, and provide audit support.

While it may come at a cost, the potential savings and peace of mind from hiring an accountant make it a worthwhile investment. If you need help with your tax return, consider outsourcing the task to an accountant.

If you are looking for Sunshine Coast accountants, we can help you. SMB Accounting does individual tax returns, small business accounting with various small business accounting packages available, audits, and more. Contact us today or sign up for our newsletter to learn more!

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Avoid These 5 Common Tax Return Mistakes in Australia

Lodging tax returns each year is a requirement in Australia. However, it can be a daunting task, especially for those lodging their return for the first time. Failing to lodge your returns correctly can lead to penalties and fines, so it’s essential to avoid making mistakes.

Here are a couple of common tax return mistakes in Australia that you should be aware of:

1. Forgetting to Declare All Income

One of the most common mistakes is failing to declare all your income. Many forget to declare income from side hustles or part-time jobs, leading to later trouble. The Australian Taxation Office (ATO) has access to various information sources, including bank accounts, financial institutions, and employers. You must report all your income, including interest, dividends, and rental income, to avoid penalties and fines.

2. Claiming Ineligible Deductions

Another common mistake is claiming deductions that are not eligible. While it’s important to claim all the deductions you’re entitled to, you must ensure they are legitimate. Some common ineligible deductions include personal expenses like gym memberships, travel expenses between home and work, and clothing expenses. You can only claim deductions that are directly related to earning your income. As such, it’s important to keep records and receipts to support your claims.

3. Not Keeping Accurate Records

Keeping accurate records is crucial when it comes to filing tax returns. Many people make the mistake of not keeping records of their income or expenses, making it difficult to file their taxes correctly. You should keep records of all your income and expenses, including receipts, invoices, and bank statements. This will help you claim all the deductions you’re entitled to and avoid penalties.

4. Failing to Lodge on Time

Another common mistake is failing to lodge your tax return on time. The due date for lodging your tax return in Australia is usually 31 October each year, however if you use a Registered Tax Agent, the lodgement date can be up to the 15th May of the following year. If you fail to lodge your tax return by the due date, you may face penalties and fines. If you cannot lodge your tax return on time, contact the ATO as soon as possible to make alternative arrangements.

5. Not Seeking Professional Advice

Finally, lodging tax returns can be complicated, and many people make the mistake of not seeking professional advice. A tax professional can help you understand your tax obligations and ensure you claim all the deductions you’re entitled to. They can also help you avoid making mistakes that could lead to penalties and fines. While hiring a tax professional may cost you money, it’s a worthwhile investment in the long run.

Conclusion

All in all, lodging tax returns can be a daunting task, but it’s essential to avoid making mistakes. Failing to lodge your return correctly can lead to penalties and fines, which can be costly, not to mention a huge waste of time. So, by avoiding these common mistakes, you can ensure that your tax return is lodgedcorrectly and on time. If you’re unsure how to lodge your return or need help, seek professional advice from a registered tax agent or accountant!

SMB Accounting offers individual tax returns along with small business accounting, SMSF audits, and many other things to help individuals and organisations stay on top of all their financial needs. If you are looking for a tax professional in Australia to assist with tax returns, contact us today.

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Advantages of Getting a Tax Accountant for Your Business

If you own a business, there are numerous advantages to hiring a tax accountant to help manage your financial affairs. A tax accountant is an expert in the field of taxation and can help you keep track of your taxes and identify and maximise any deductions that may be available to you. 

Additionally, a tax accountant can help you choose the most advantageous type of business entity for your company and understand the nuances of taxation related to that specific business entity. They can also provide valuable advice on financial and tax-related topics as you grow your business. 

By streamlining the procedure and being updated on all the laws, rules, and deadlines pertaining to tax filing, a tax accountant may help you save time and money. Ultimately, a tax accountant is an invaluable asset when it comes to managing taxes for your business.

You should think about employing an accountant for the following additional reasons.

A Tax Accountant Helps You Save Time

Nothing will be as easy as sitting down with a tax expert, despite the fact that there are various services available to help you file your taxes independently. Even if it can seem like the quickest approach to finish your lodging is to do your own tax return, it isn’t always the best option. 

To ensure you obtain the greatest outcomes, your tax accountants will ask you a number of questions and go through all of your alternatives during a session.

It may take considerably longer than a single visit with your advisor to gather your data, figure out your deductions, and then review your application to make sure everything has been done correctly.

They Lessen Your Anxiety

You have a great deal of responsibility if you file your return by yourself. If the Australian Taxation Office decides to review or audit your returns, any errors you make during the application process could resurface and pose issues. 

There may be fines, interest, or penalties due as a result. So one of the biggest reasons to employ a business advisor is that you will have assurance, knowing that your taxes are being handled by an expert if this is the portion of the taxing process that gives you anxiety. 

You can rest assured that your business will be in conformity with all applicable tax laws and that your return has been prepared correctly if you use tax accountants to file your return.

There Are Advantages to Extended Deadlines

The deadline for self-filed tax returns is October 31st, but if you use an agent to file, you can have a later deadline like May of the following year. You will have extra time to compile your deductions and contact your agent as a result.

They’ll Streamline the Procedure

Meeting with a tax accountant will be very helpful in clearing up the complexity surrounding tax returns. Your returns will be completed accurately and quickly. Interacting with your accountant is also a terrific method to educate yourself on the procedure. 

Using a tax agent will save you a lot of time and effort if you have many jobs, run a business, own property, or manage an investment portfolio.

Conclusion

After considering all the advantages, there is no doubt that getting a tax accountant for your business is the right choice. It will help you stay organised and maximise your chances of success by gaining valuable insight into the business’s financials. 

Tax accountants provide a great service and can save you from headaches down the road. Managing taxes better is an integral component of running a successful business, and having a tax accountant can ensure that you’re able to efficiently and accurately comply with all relevant tax laws.

Ultimately, bringing in a tax accountant offers numerous potential benefits for a business and should be seriously considered for any business of any size.

If you need assistance with your tax return on the Sunshine Coast, SMB Accounting is here to help! We can do your individual tax returns, small business accounting with various small business accounting packages available, SMSF audits, and more. Contact us today to learn more!

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A Closer Look at the Instant Asset Write-Off Tax Benefits

The Australian government has introduced a higher instant asset write-off (IAWO) threshold as part of the COVID-19 relief package. It’s essentially a cost-saving incentive for businesses that allows them to claim immediate write-offs for items purchased for business use. The ‘instant’ aspect of the IAWO scheme is particularly appealing for businesses – as it allows for faster tax deductions than other conventional credits. It may seem complicated, but understanding the basics could be beneficial for you and your business in the long run.

What Is the Instant Asset Write-Off?

The IAWO is designed to encourage businesses to invest in new assets to help increase their productivity, efficiency and competitiveness. It means that when businesses make eligible asset purchases, they can deduct a portion of the cost from their tax payable in the same income year.

Eligibility Criteria 

The IAWO applies to businesses with an aggregated turnover of $500 million or less. These businesses are eligible to claim an instant tax deduction for each asset it purchases or installs costing less than $150,000 purchased between 12 March 2020 and 31 December 2020. From 2021 to 2022, the threshold will be capped at $1,000, and businesses are eligible to claim $150,000 worth of assets each year.

How Does It Work?

The IAWO is a dollar-for-dollar deduction for businesses when they purchase eligible assets. There’s no limit to the amount of assets a business can write-off as long as each asset is valued under (or equal to) the IAWO threshold.

When a business buys an eligible asset and deducts its cost from their taxable income in the same tax year it was purchased, this is called depreciation.

By claiming a deduction for the asset’s cost in the same tax year it was purchased, businesses could potentially reduce their tax liability in this same time frame.

Claiming the IAWO 

It’s important to note that businesses must be registered with the ATO in order to claim the instant asset write-off. This also means that businesses must keep up to date with their ATO obligations, such as lodgement of business activity statements and income tax returns.

Businesses must also supply evidence of the asset’s purchase and installation to the ATO by way of valid receipts.

Advantages of the Instant Asset Write-Off

The IAWO can be beneficial for businesses in a number of ways. Not only does it enable businesses to receive a tax deduction for assets in the same income year as the purchase was made, but it also allows businesses to reinvest any savings back into the business to help them grow and develop.

Being able to invest in assets to expand or update their business operations with the IAWO, businesses can focus on the bigger picture. This can help with product or service advancements and modernisation while enabling businesses to remain competitive.

Conclusion

The IAWO allows businesses to ‘instantaneously’ receive tax deductions on eligible assets they purchase or install. By supplying suitable evidence of the asset’s purchase and installation to the ATO, businesses can easily claim their tax deductions during the same tax year. What’s more, this could lead to considerable savings for companies to reinvest back into their business.

If you want to learn more about small business asset write-offs and other tax benefits, it’s best to work with a professional accountant to ensure you are getting the most out of your tax deductions. At SMB Accounting, our Sunshine Coast accountants do all that and more. When you work with us, you can be sure that your finances are in safe hands. Contact us today, and let us help you with your tax deductions and asset write-offs.

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When Should You Get an Audit For Your Business?

An audit is an important step for any business, regardless of size. A financial statement audit verifies correctness and adherence to rules and regulations by examining the financial statements independently.

In addition to assuring stakeholders, an audit provides insight into a company’s financial health and performance.

Corporations frequently use a public accounting firm for auditing their financial accounts. Audits are occasionally a work the organisation must carry out, although they can be expensive and time-consuming.

However, how can you know if you fit in with this group?

If you’re unsure whether an audit is the best option, ask these important questions to guide your decision-making and learn where to find accountants on the Sunshine Coast QLD. 

What Is An Unbiased Audit? 

A company may use an impartial CPA or CA, a third party, or an independent public accounting firm to analyse its financial records and transactions to minimise conflicts of interest and protect the audit’s integrity.

Audits are regularly performed to protect shareholders and potential investors from erroneous or deceptive financial statements. 

The auditor is typically in charge of financial accounting and related data analysis, reviewing corporate policies and practices, determining the worth of the company’s assets and looking for signs of impairment, calculating tax obligations, and verifying that rules and the tax code are followed.

What Reasons Are There For An Audit?

Numerous circumstances might prompt a corporation to begin an audit. Consider the components of the following business models that demand independent audits:

  • Venture-backed: Many venture capitalists do this, though not all of them. They have the right to demand that an experienced third party conduct an in-depth audit of your financial accounts.
  • Bank-affiliated: Not all banks will want an audit of the financial records of your business. However, a lot of people of a certain size do require them.
  • Seller: Every corporation that intends to sell its firm would be wise to organise an audit. Most prospective purchasers will require one because they want to confirm that the numbers you present adhere to GAAP. The sale price can increase with two to three years’ worth of audited financial documents.
  • Public: You need three years’ worth of audited financial documents to float your business.

When Ought One To Think About An Audit?

If you plan to have your financial accounts audited, you should work with a financial expert and set up a meeting with your audit team early.

You must inform your financial staff of the difficulties facing your business and give them ample time to complete their list of audit request items.

What Actions Should You Take To Prepare For An Audit?

The more prepared you are, the faster and easier an audit can be conducted. Preparation begins well before the audit and has much to do with how your business initially handles its finances.

Make sure your business is audit-ready by carrying out the following important tasks:

Implement a rigorous closing process each month. Making sure that all transactions, journal entries, and financial statements are timely and precisely recorded will be made simpler.

Collaborate with a seasoned financial specialist to assist you with your business ambitions. The smartest way to organise, plan, and handle financial issues is to find the right financial consultant.

Look for someone with auditing experience. Usually, this will be the company’s chief financial officer or an accountant on the Sunshine Coast. The CFO will be in charge of working with the audit team, offering any pertinent information, and resolving any potential issues.

Amass the required information, documents, and data.

What Documents Are Needed For An Audit?

For a typical audit, access to the following will be required:

  • broad transactions
  • confirmation of significant assets (i.e., cash, accounts receivable, etc.)
  • Corporate records about equity
  • Material contracts
  • Internal system safeguards are examined
  • P&L classification for expenses

Conclusion 

Companies need to understand when to get an audit. The timing of an audit depends on the size and nature of the organisation, the type of audit, and the organisation’s goals. 

Generally, companies should consider getting an audit by accounting firms on the Sunshine Coast if they are experiencing significant changes in their business structure, operations, or finances or if they need to meet certain legal or regulatory requirements. 

Additionally, companies should consider getting an audit if they want greater assurance and visibility into their financial statements and performance. Ultimately, the right time to get an audit depends on the needs and goals of the organisation.

SMB Accounting does Individual tax returns, small business accounting with various small business accounting packages available, SMSF audits (self-managed super funds), and a Xero accounting software-based accounting business. We also offer the following audits: trust account audits, audits of non-profit organisations, audits of special purposes financial statements, special needs audits, and more. Speak to an accountant on the Sunshine Coast today!

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