$20,000 asset write-off
The instant write off applies to assets purchased up to the value of $20,000 for business that have annual revenue of up to $2 million. This gives an immediate tax deduction instead of having to write the asset off over the following years (depreciate). Eligible assets include things like vehicles, office furniture and equipment.
Changing company tax rate
Legislation has passed for a 1.5% company tax cut for incorporated small businesses and a 5% tax discount for small businesses that are not incorporated (capped at $1,000). This means if you defer sales invoicing until after 30 June, you will pay 1.5% less tax on this income. Likewise, if you pay expenses prior to 30 June, you will gain a 1.5% tax deduction on these expenses.
If your business cash flow allows, bring forward June quarter Superannuation Guarantee Charge payments. Although this is not due until 28th July, if payment is made before 30th June it can be claimed as a tax deduction in the current financial year.
Businesses should also be aware that the governments SuperStream program requires electronic payment of super contributions. Small businesses with 20 or fewer employees have until 30th June 2016 to be compliant.
If your business buys or sells stock, you will need to do a stocktake if either your business turnover is greater than $2 million, or the difference between stock level at beginning and end of financial year is more than $5,000. If any stock is old or obsolete, this should be written off in full.
Bad debts must be written off before the end of June to be claimed as a tax deduction. The debt in question must have previously been included in assessable income, and documented measures to recoup the debt must have been taken.