Considerations This Tax Season
The time has come to farewell the 2015- 2016 financial year that was. Whether you are tearing your house apart tracking down those elusive receipts, or spending late nights counting never ending piles of stock, the ‘financial new year’ can feel far from happy and joyous.
Here are a few areas that you may or may not have considered regarding your tax…
Was it under $20,000? Immediate deduction!
That new computer for the office or coffee machine for your café. Assets purchased for small business this financial year, under $20,000 excluding GST can be immediately deducted as a tax expense this year. Don’t forget to consider the price of the asset minus GST- it could help drop it under the $20,000 threshold.
Take stock of how you value your stock
You don’t just have to take things at cost value. There are two other methods available for small businesses to utilise when valuing their products at the end of the financial year.
Most businesses believe stock on hand must be valued at cost but this isn’t always the case. You can also consider the market selling value or replacement value.
Make a good year on the land even better
Our primary producers in the region have seen an improvement in prices, from cattle farmers to macadamia growers.
A great way for primary producers to deal with uneven income is to consider the Farm Management Deposit Scheme (FMD).
Deposits into a FMD are 100 percent tax deductible on this year’s return, and 100% assessable when withdrawn in a later year.
New financial year, new opportunities
Now is a great time to review your financial goals and aspirations, whether you are an individual or business owner.
The majority of people will be touching base with their accountants in the coming weeks. Take advantage of this and discuss with them the ins and outs of your businesses and personal finances.
Make the most of your time with your accountant, soak up their insight, and ask their opinion on your goals for the new financial year.
To arrange your tax return with WCA please call us on 6621 2581. We look forward to working with you in the new Financial Year.
*Please note this blog does not provide specific advice tailored to individual circumstances and you are encouraged to speak to your accountant before acting upon the above.