Are you ready for tax season?

Business assets

Temporary full expensing allows businesses to claim an immediate deduction for the business portion of eligible new depreciating assets.

Small businesses can also claim an immediate deduction for the business portion of eligible second-hand depreciating assets.

The asset must be first used or installed ready for use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2022.

Instant asset write-off also allows an immediate deduction.

The threshold for each asset is $150,000 for assets purchased by 31 December 2020 and first used between 12 March 2020 and 30 June 2021. Different thresholds and eligibility apply before 12 March 2020.

Backing business investment allows eligible businesses to claim the cost of new depreciating assets such as equipment at an accelerated rate.

It applies to the 2019–20 and 2020–21 income years.

Only one incentive can apply for each asset, so you should determine which incentive is right for your business.

Please note that there are several categories to consider for example:

  • Temporary full expenses
  • Instant asset write-off
  • Backing business investment – accelerated depreciation
  • Interaction of depreciation incentives
  • Don’t forget to also claim your APAN membership, any documents you have purchased from us as well, and of course Conference registrations are also fully tax deductable.

To ensure you have covered all your bases you can access a Factsheet from the Business Gov. website   https://www.ato.gov.au/Newsroom/smallbusiness/General/Are-you-ready-for-tax-time-/?sbnews20210616

SUPER OBLIGATION: DO YOU NEED HELP AS COVID CONTINUES?

We know that many businesses and communities are being heavily affected by the challenging economic conditions created by continuing COVID-19 outbreaks and restrictions. If you’re having difficulty meeting your tax and super obligations because of COVID-19, you can access help.

It’s important to lodge on time, even if you can’t pay by the due date. This will give you certainty of your tax and super position with the Tax Office, and it will show that you are aware of your obligations and doing your best to meet them.

The key is not to pay anything because of hardship.  Pay what you can ask for help.  The Tax Office has a range of support options available for you, depending on your situation. This includes tailored payment plans that allow you more time to pay.

Their online services also give you access to a range of tax and super services in one place such as lodging your activity statements and tax returns, paying your tax bills as well as creating and managing payment plans.

If you need help to lodge on time, call the Tax Office and seek immediate help as soon as you become aware that you cannot manage.

Remember, tax agents and BAS agents can help with your tax.  You can also access the Emergency Support Infoline 1800 806 218.

DID YOU RECEIVE JOBKEEPER THIS FINANCIAL YEAR?

Please note that JobKeeper payments are taxable, so you need to include them in your tax return. If you’re a sole trader, partnership, company or trust that’s received JobKeeper payments, the Tax Office will contact you or your registered tax agent by early July to let you know:

  • the total amount of JobKeeper payments your entity received since 1 July 2020, or where you can find out
  • where to report JobKeeper payments in your tax return.

From early July, sole traders who have received JobKeeper payments for themselves and any eligible employees will also be able to find the total amount of JobKeeper payments they’ve received through Online services for business and myTax. Their registered tax agent will also get this information.

The amount will be provided as ‘information only’ and will not be mapped to a label.

Here are some important points about including JobKeeper payments in your return:

  • You don’t need to include any JobKeeper payments that you’ve already repaid (or are repaying to us) in your return.
  • You should review and cross-check the payment amounts against your own records to make sure they’re accurate.

If you have a tax agent, they should be able to sort this out for you.