2013 Business Tax Planning Stratgeies

The end of the 2012/13 financial year is almost here, so now’s the time to review what strategies you can use to minimise your tax.


1. Concessional Superannuation Cap

The concessional superannuation cap for 2013 is $25,000 for persons of any age. Do not go over this limit or you will pay more tax!


Note that employer super guarantee contributions are included in these caps. Where a contribution is made that exceeds these limits, the excess is taxed to the fund member’s account at an effective rate of 46.5%.


In order to claim a tax deduction in the 2013 financial year, the super fund must receive the contribution by 30 June 2013.


2. Asset Depreciation

If your business is a Small Business Entity (turnover less than $2 million), then from 1 July 2012 the following tax concessions apply:

·         Depreciating assets (including motor vehicles) valued at less than $6,500 will be immediately deductible

·         Depreciating assets valued at more than $6,500 will be depreciated in one pool at a rate of 15% in the first year and 30% in future years

·         The first $5,000 of a motor vehicle (with a cost of more than $6,500) purchased for a business is an immediate deduction


So if you need office equipment or motor vehicles and you have a Small Business Entity, these new changes make it much more tax effective for you provided you purchase these items BEFORE 30 June 2013.

3. Tools of Trade / FBT Exempt Items

The purchase of Tools of Trade and other FBT exempt items for business owners and employees can be an effective way to
buy equipment with a tax benefit. Items that can be packaged include Handheld/Portable Tools of Trade, Computer Software, Notebook Computers, Personal Electronic Organisers, Digital Cameras, Briefcases, Protective Clothing, and Mobile Phones.


If structured correctly, the Employer will be entitled to a full tax deduction for the reimbursement payment to the employee (for the equipment cost), and the employee’s salary package will only be reduced by the GST-exclusive cost of the items purchased. You should buy these items before 30 June 2013.


4. Employee Superannuation Payments

To claim a tax deduction in the 2013 financial year, you need to ensure that your employee superannuation payments have CLEARED your business bank account by 30 June 2013.


For any last minute superannuation payments, we recommend that you arrange for a BANK CHEQUE made payable to your employee super fund prior to 30 June 2013.


5. Defer Income

Where practical, defer issuing further invoices and/or receiving cash/debtor payments until after 30 June 2013.


6. Bring Forward Expenses

Purchase consumable items BEFORE 30 June 2013. These include stationery, printing, office and computer supplies.

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