Arpana from Avenue Solutions Shares Tax Tips

Essential Tax Tips for Small Businesses and Individuals (courtesy of Arpana Patel of Avenue Solutions – listen to the podcast for more information) 

Staying on top of tax regulations and changes is crucial for both small business owners and individuals. In this blog post, we’ll provide you with valuable tax tips to help navigate the Australian tax system. These tips cover important updates, deductions, and common pitfalls to avoid. Let’s dive in!

Temporary Full Expensing (Instant Write-Off):
If you’re a small business owner, take advantage of the temporary full expensing measure before it changes on June 30th. Currently, you can instantly write off assets up to $150,000. However, from July 1st, the threshold will be reduced to $20,000. Consider bringing forward any planned equipment purchases to maximize your deductions.

Single Touch Payroll (STP):
STP is a significant change for small businesses. Ensure your STP reporting is accurate and linked to the ATO database. This system eliminates any discrepancies and helps prevent issues with Centerlink and child support claims.

Cryptocurrency Trading and Reporting:
If you’re involved in cryptocurrency trading, be aware that digital currency platforms are now connected to the ATO. Ensure you accurately report any cryptocurrency sales or trades in your tax returns to avoid penalties.

Rental Property Expenses:
Interest expenses on rental properties are closely scrutinized. Be cautious when claiming interest deductions on your rental property, as banks are now sharing loan information with the ATO. Consult a professional tax accountant to ensure you claim only eligible expenses.

Repairs vs. Capital Assets:
Understanding the difference between repairs and capital assets is crucial. While repairs and maintenance expenses are deductible, replacing an asset, such as a washing machine, falls under capital expenditure and is not classified as a repair. Seek professional advice to correctly categorize your expenses.

Home Office Expenses:
For individuals who work from home, the way home office expenses are claimed has changed. From March 1st, you need to keep a proper record of the actual hours worked at home. Use tools like timesheets in accounting software or dedicated apps to track your work hours accurately.

Deductibility of Uniforms:
Uniform deductions are subject to specific rules. Wearing a uniform without a logo or branding is generally non-deductible unless it is protective clothing or required for specific occupations. Ensure you understand the deductibility criteria for uniforms in your profession.

Maintaining a Logbook for Car Expenses:
If you use your car for work purposes, keep a logbook or maintain an Excel spreadsheet documenting the kilometers traveled for business. There are two methods for claiming car expenses: the logbook method and the 5,000-kilometer method. Ensure you have proper records to substantiate your claims.

Stay Informed and Seek Professional Assistance:
It’s crucial to stay updated on tax regulations and seek advice from professional tax accountants to ensure compliance and maximize your deductions. Don’t hesitate to reach out to your accountant for personalized guidance based on your specific circumstances.

By implementing these tax tips, small businesses and individuals can navigate the Australian tax system more effectively. Remember to take advantage of the instant write-off, accurately report cryptocurrency trades, differentiate repairs from capital assets, maintain proper records for home office and car expenses, and seek professional assistance when needed. Stay informed and organized to optimize your tax outcomes.



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Phoebe is available for interviews, guest appearances, article commentary, and talks on a range of topics relating to property, mortgage broking, and personal finance (particularly for women!).