EOFY Tax Time Tips to Save Your Business Thousands!

How Small Businesses Can Maximize the $20,000 Asset Write-Off, plus more…

As the end of the financial year approaches, small businesses have an opportunity to optimize their tax position by taking advantage of the $20,000 instant asset write-off, alongside other strategic tax reduction methods.

Here’s how small businesses can leverage these opportunities to their benefit.

The $20,000 Instant Asset Write-Off

The instant asset write-off allows small businesses to immediately deduct the cost of qualifying assets, up to $20,000 per asset, rather than depreciating them over several years.

This can provide substantial cash flow benefits and reduce taxable income for the current financial year.

Eligibility and Maximization:

• Eligible Businesses: Small businesses with an annual turnover of less than $10 million can access this write-off.
• Qualifying Assets: These include most business-related assets like vehicles, machinery, office equipment, and technology. Each asset must be less than $20,000 to qualify.
• Timing: To benefit, businesses must purchase and install the assets by June 30 of the current financial year.

By investing in necessary assets before the cut-off date, businesses can improve their operational efficiency while also enjoying immediate tax benefits.

Additional Tax Reduction Strategies

In addition to the instant asset write-off, small businesses can employ several other strategies to reduce their tax liability:

• Prepay Expenses: Prepaying expenses such as rent, insurance, and subscriptions for the upcoming year can bring forward tax deductions into the current year.
• Review Debts: Writing off bad debts that are unlikely to be recovered can reduce taxable income. It’s essential to document the decision and attempt to recover the debt before writing it off.
• Stock Management: Conduct a thorough stocktake and write off any obsolete or damaged inventory. This can reduce the value of closing stock and, consequently, taxable income.
• Employee Superannuation: Ensuring that all employee superannuation payments are made before June 30 can allow for tax deductions in the current financial year. This also helps in maintaining good employee relations.
• Defer Income: If possible, defer the receipt of income until after June 30. This can be particularly useful if you expect to be in a lower tax bracket in the following financial year.
• Consider Capital Gains: If you’ve made a capital gain, consider selling underperforming assets to realize a capital loss that can offset the gain. Additionally, utilizing the small business CGT concessions can provide further relief.
• Professional Advice: Engaging with a tax professional can provide tailored advice specific to your business situation, ensuring compliance and maximization of available deductions.

By strategically planning and implementing these tax reduction strategies, small businesses can significantly improve their financial standing at the end of the financial year.

The $20,000 instant asset write-off, in particular, offers a straightforward yet impactful method to enhance cash flow and reduce tax liabilities, enabling businesses to reinvest in growth and development.

How to Finance Your Asset Purchase…

If you’re hoping to take advantage of the $20,000 instant asset write-off but need funding we can help!

We have a range of traditional vehicle & equipment financing options that may suit your business needs.

We also work with a panel of 7 of Australia’s best unsecured business lenders and can help you access loans from $5,000 to $500,000 with cash flow friendly repayments.

All you need is an ABN and 3 months bank statements, and you can borrow up to 200% of your monthly turnover.

Best of all you don’t need to provide any financials or security and loans can be approved and funded within 24 hours.

>> To apply for an Unsecured Business Loan visit – XpressBusinessLoans.com.au

As always, we are here to help – so hit reply or call 08 8451 1500 anytime should you have any questions about buying and financing an asset for your business by June 30.

Cheers,

Sam, Matt & Team
​Urbantech Finance

PS. Don’t delay, get on the front foot right now – click here, reply to this email or call 08 8451 1500 to discuss your needs.

PPS. Get a cheaper rate and save thousands in interest by refinancing to a new lender! To find out more click here