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Monday / December 16.
HomeminewsBOQ Specialist EOFY Review

BOQ Specialist EOFY Review

With the end of the financial year fast approaching, BOQ Specialist’s Gavin Brandenburger reviews the advantages of the current tax deduction for small businesses to help you get your finances in shape.

“Working with dental, medical and veterinary professionals for over 25 years, we know that getting finances in order is one of many tasks on the ‘to do before 30 June’ list. To help make the process run smoothly we’ve pulled out some of the key points to consider in order to get the most out of the deductions,” says Mr Brandenburger.

It’s advised that practitioners seek advice from their tax advisor to be sure of what is and is not eligible.

Mr Brandenburger’s first piece of advice is to make the most of the $30,000 asset write-off as it will improve cash flow and provide a boost to small business activity and investment for another year.

The budget measure allows small business owners with a turnover from $10 million to less than $50 million to claim an immediate deduction until 30 June 2019 for assets they start to use – or have installed ready for use – that cost less than $30,000.

Assets valued higher, which cannot be immediately deducted, can continue to be placed into the small business simplified depreciation pool, where they will depreciate at 15 per cent in the first income year and 30 per cent each income year thereafter. This pool can also be immediately deducted if the balance is less than $30,000, including existing pools, over this period.

It is also important to consider what assets are eligible, remembering that small businesses have to purchase and own the asset in order to be entitled to the immediate depreciation treatment. Any equipment relating to a practitioners business is included, whether that be computers or specific medial equipment. However, such items must be physical assets so marketing costs are not permitted.

While there are no limits to the number of items a business can claim, there are depreciating assets that are not deductible under this tax initiative, such as software developed in-house by a business. It’s advised that practitioners seek advice from their tax advisor to be sure of what is and is not eligible.

“This tax concession for small business owners is a simple and efficient way to boost the health of your practice and it is important for business owners to investigate if their assets are eligible for the deduction before the end of the tax year,” said Mr Brandenburger.

With the end of financial year just around the corner BOQ Specialist suggest you start considering what assets you may wish to acquire and claim before 30 June.