Taxation for small & medium sized businesses
We understand that every business situation is unique and as such, we're dedicated to providing solutions tailored to suit each individual need. KG Partners and Co specialise in tax structuring advice, accounting solutions and taxation planning to help our clients make more profit and pay less tax. We take pride in working hand in hand with you to help you reach your financial goals.
Small Business Concessions
All small businesses will receive an immediate tax deduction for any individual assets they buy costing less than $20,000. (Currently, the threshold sits at $1,000).
This $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. These arrangements start from Budget night and continue until the end of June 2017.
For further information on accelerated depreciation for small business, contact our office.
Apply for ABN or update your registration details
Our office can assist you with completing and lodging an ABN application as well as register business names through ASIC register at a minimum cost.
Online Bookkeeping (MYOB)
Go online with MYOB business essentials and download your bank statements, email your invoices and keep up to date records with access at your fingertips from as little as $37 per month.
Contact our office for more information, we'll show you how easy it is and save time and money.
Superannuation for Self Employed
Personal deductible contributions
Your personal deductible contributions include any personal contributions you made to a super fund that you can claim a tax deduction for on your individual tax return. You can claim an income tax deduction for personal contributions you make to a super fund if you meet certain eligibility criteria.
If you made a personal contribution and you did not claim a deduction for it, the amount is not a reportable super contribution.
The maximum amount to contribute is up to $25,000 for 30 June 2015 but you must lodge a notice of intent to claim a deduction and your superannuation fund must acknowledge that notice when you make the payment before the end of financial year.
To find out more and make a claim, contact our office for further information.
Superannuation for Employers
For salary or wage payments made as from 1st July 2016 all employers employing must register for superstream please contact our office.
Personal superannuation contributions for 15/16 is $30000 if under 50 years old and $35000 if over.
Superannuation contributions for employees must be paid directly to the employee's nominated Superannuation Fund by the 28th of each quarter. Failure to make the payments on time will require you to forward the payments directly to the ATO. If you are late, contact our office to assist in calculating and lodging directly.
From 1 July 2014, employers with 20 or more employees are required to make contributions using SuperStream - if you haven't registered, contact our office to assist as you only have 12 months to register.
Tax Structures. What structure is right for you?
As your business grows, it is wise to look and assess what structure would be suited for your business. Our firm specialises in Companies, Trusts, Partnerships and Sole Trader. We can assess and recommend what structure would be best suited to meet your business needs and reduce your tax.
Get your deductions right?
CLAIMING BUSINESS DEDUCTIONS
You can claim most expenses you incur in running your business as deductions to reduce your assessable income. The rules can vary depending on the nature of each expense and industry.
You must keep records of your business transactions, including expense claims, for five years after they are prepared, obtained or the transactions completed, whichever occurs later. If you don't have those records and you are subject to an ATO audit, your expense claim may be denied or reduced.
Table: Common Business Deductions
||Deductions for premises or assets you buy or use
|| Work related deductions
|Accounting, bookkeeping or BAS preparation
||Computers & related hardware *
|Advertising & marketing
||Computer operating software *
|Cars, trucks or other vehicle costs (excluding private use)
||Computer software applications
|| Contractor or sub-contractor hire
|Council rates & fees
||Depreciation of plant & equipment, cars & trucks *
|| Fringe benefits provided & fringe benefits tax
|Electricity, gas & fuel
||Home office expenses
|| Labour-hire fees
|| Professional fees or registrations
|Franchise fees (not initial purchase) or royalties
|| Recruitment expenses
|Interest on business loans or overdraws||Loan interest||Salary or wages|
|Legal fees*||Rent or lease of business premises||Staff training|
|Office expenses, stationery||Service & repairs to plant & equipment||Superannuation guarantee contribution|
|Public liability or income protection insurance||Tools|
|Registrations and licences||Uniforms or protective clothing|
|Research & development (companies only)||Workers' compensation insurance|
|Stock or materials|
|Travel (excluding private portion)|
*For these expenses, some costs are deductible immediately, some are claimed over time.
Watch the video Business Deductions for small business
Is Fringe Benefits Tax right for you?
FRINGE BENEFITS TAX (FBT)
Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees, including their employee's family or other associates. The benefit may be in addition to, or part of, their salary or wages package.
If you are a director of a company or trust, benefits you receive may be subject to FBT. ie: Purchase of a vehicle under company for private use purposes.
Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided.
The FBT year runs from 1 April to 31 March.
Watch the video Paying Workers FBT for small business
For further information about whether you are required to register and lodge a Fringe Benefits Tax return, contact our office to discuss.