You’re not going to believe it, another financial year done and dusted. Here’s a few quick tax tips to help your construction business.
There are loads of deductible expenses that you can claim, and it’s best to brush up on them so you can make the most of them. Operating expenses differ from capital expenses in that they are the day to day costs of running your business.
But be careful, because the ATO are getting stricter with work-related tax deductions. *That trip to Bali to check out the local building materials (and the surf) just might not make it over the line.
Make sure to write off bad debts that you haven’t been able to recoup in the current financial year. Document what the debts are and any efforts you made to recover them, and put your decision in writing so that you have evidence that the debt was written off before the end of the financial year.
Instant Asset Tax write-off
This one’s been available for a few years now and can bring some decent savings your way. It has now been increased to $30,000, and businesses with a turnover of less than $50 million are eligible. If you purchase an asset (second hand or new) you’re able to claim a deduction for the business portion. This is good for tool, cars/utes, software, technology - onsite or in the office, i.e computers, Ipads, drones, etc. Every place seems to have an EOFY sale on too, so it’s the perfect time. Speaking of end of financial year sales, right now you can get 12-month subscription of ConX Measure for $300 (ends Sunday 30th June 11.59pm). Which is locked in, meaning as we bring in loads of new features what you’ll pay is fixed!
For the 2018–19 financial year, if you’re a business with a turnover less than $50 million then you’re eligible for the lower tax rate of 27.5%.
When to lodge your return
The ATO suggest the best time is between mid-August and September, as you’ll be able to take advantage of the pre-fill information available in myTax.
Good luck! and let us know if you'd like to make the most of our EOFY offer! (12-months ConX Measure = $300)