For a lot of small-scale entrepreneurs in Perth the tax concessions available can give relief and assistance to boost the flow of cash and boost growth. But, determining whether your business is eligible for tax concessions and what concessions you are eligible for can be difficult. This is where a skilled accountant for business taxes Perth is a great resource.
This blog will discuss the most common tax concessions for small-sized enterprises in Perth as well as eligibility criteria and how a reputable small-business accounting professionalcan assist you in maximising the tax benefits you receive.
What Are Small Business Tax Concessions?
Tax concessions are government-sponsored incentives that are designed to ease the burden of tax for small-sized businesses. They help companies save money and invest in growth and overcome financial hurdles. These concessions may be applied to different taxation areas, such as income tax and capital gains tax (CGT), GST, and depreciation.
Why Small Business Tax Concessions Matter
Small businesses usually have smaller budgets and have less room for error when compared to larger enterprises. Tax concessions allow breathing space for financial concerns by:
- Reduced tax-deductible income
- Tax liabilities that are deferred
- Giving deductions on business expenses
- Relieving capital gains arising from selling business assets
In utilizing these incentives, your business can keep more profits to reinvest or cover operational costs.
Common Small Business Tax Concessions in Perth
- Business Income Tax Small x Offset
If your company is structured as a sole-trader, trust, or partnership and you are qualified for a tax credit which reduces the tax due on business income in excess of a certain amount.
- Instant Asset Write-Off
This option permits you to immediately deduct the expense of eligible assets, up to a certain limit, rather than depreciating them over time. If, for instance, your company buys equipment or machinery and equipment, you can claim the total cost within that year, thereby improving the cash flow.
- Simplified Depreciation Rules
Smaller firms operating in Perth with a turnover that is below the threshold can benefit from simplified depreciation techniques, like the grouping of assets. This allows you to get deductions for many assets merged into one pool, thus reducing the need for record-keeping and tax calculation.
- Small Business CGT Concessions
When you decide to sell your business asset, you could be qualified to receive CGT concessions that lower or eliminate your taxes on capital gains. Four concessions are available:
- 15-year exemption
- 50% reduction in active assets
- Retirement exemption
- Relief from rolling
Each concession comes with particular eligibility requirements that are depending on the size of the company as well as the use of assets and the length of ownership.
- GST Concessions for Small Businesses
Small-sized businesses that have an annual turnover of less than $10 million could be eligible for simplified GST reports, like tax-free turnover, the GST turnover threshold as well as the cash accounting method used for GST that can make it easier to compliance.
Eligibility Criteria for Small Business Tax Concessions in Perth
To be eligible for small business tax breaks, your company generally has to meet a threshold for aggregated turnover, which is determined by your total turnover and that of any related or affiliated entities. The typical thresholds for turnover are:
- Less than $10 million is qualified for the majority of small-business concessions
- Under $2 million: Eligibility for certain concessions
Other elements that impact admissibility include the kind of asset, its use in the company, and the length of time you’ve owned it.
How a Business Accountant Perth Can Help You Determine Eligibility
The rules of eligibility, as well as the thresholds and conditions, can be daunting. A business accountant in Perth specializes in the interpretation of tax legislation. They can:
- Examine your company’s structures and revenue to determine your eligibility
- Find all applicable tax concessions that apply to your particular situation
- Make sure you keep records in compliance to prove the claims
- Provide advice on structuring tax-efficiently to maximize concessions
- Assistance with prompt and accurate tax filing to stay clear of penalties
Benefits of Working With the Small Business Tax Accountant Perth
A partnership with a seasoned accountant gives you the peace of mind knowing that you’re claiming every concession that you can get and that you’re staying in compliance. Benefits include:
- Individualised advice specifically specific to your goals for business
- Effective tax planning can cut down tax liabilities throughout the year
- Maximising offsets and deductions to boost cash flow
- Assistance with tax concessions in the sale of business assets
- Effective handling of GST reports and BAS lodgements
Common Mistakes Small Businesses Make With Tax Concessions
- If they are not eligible, it is impossible to determine this without checking the turnover or the structure
- Inadequate record-keeping is a reason to deny claims
- Late submission deadlines for applying for concessions or lodging
- Concessions to overlook in connection with either capital gains or
- Not deciding to consult a tax accountant before can lead to missed opportunities
Steps to Claim Small Business Tax Concessions in Perth
- Get a professional accounting firm in Perth to assess your tax-related eligibility.
- Collect relevant asset and financial records to support your claims.
- Implement accounting systems that are recommended to speed up tax processing.
- Concessions should be claimed correctly on your return to tax as well as your BAS.
- Prepare for future fiscal years to ensure eligibility and maximize the benefits.
Final Thoughts
If you’re operating an entrepreneur-type company in Perth Tax concessions could substantially reduce your tax burden, and also free up capital to grow. But, understanding the complicated rules and eligibility requirements requires the assistance of a specialist.
A skilled small-business tax advisor in Perth will help you determine all the concessions you can avail of and avoid costly errors, and design a tax strategy that is tailored to the specific needs of your company. Don’t let money go to the table. Explore your options today.
