Year End Tips for Business Owners

Fixed assets

Review fixed assets useful life and determine if there are any benefits in scrapping or trading in assets.

Write off obsolete inventory

The year end stock-take should involve a review of all inventory. Obsolete stock may be scrapped or valued below cost subject to specific guidelines.

Small business CGT concessions

Individuals operating a small business may be eligible for CGT concessions on the sale of business assets.

Capital expenditure vs repairs

Review all spending during the year to determine if all items are deductible or if they are capital by nature and need to be depreciated.

ATO benchmarking

Benchmarks for specific industries have been developed by the ATO to identify taxpayers who report income or expenses different to similar businesses.

Super guarantee changes

From 1 July 2013 the super guarantee rate is going up to 9.25 per cent, and the upper age limit of 70 years has been removed.

Instant asset write-off

Small businesses can claim an instant asset-write-off for a depreciating asset that cost up to $6,500.

Bad debts

Write off bad debts before year end. It must be bad, not merely doubtful and must have been previously included as assessable income.

Review unpaid expenses

Businesses who are falling behind in their rent and other expenses that work on an accruals basis may claim the arrears amount as a tax deduction.


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