Tax time tips for small business

Immediate asset write offs and an amnesty for late lodgements are two of the measures that small businesses may want to take advantage of as the end of the financial year approaches or as they plan for 2023-24.

The Australian Tax Office has highlighted a number of changes and processes that small businesses should be aware of:

• Temporary full expensing – Businesses can claim a deduction for the business portion of the cost of certain assets installed or improved on between 7.30pm AEDT on 6 October 2020 and 30 June 2023.
• Loss carry back – Eligible businesses may be able to claim a refundable tax offset if they made a tax loss in the 2019–20, 2020–21, 2021–22 or 2022–23 income years.
• Sharing economy reporting regime – If you earn income from sharing economy activities, make sure you understand your obligation to report this income as part of your tax return or activity statements.
• Lodgment Penalty Amnesty Program – Outstanding tax obligations originally due between 1 December 2019 and 28 February 2022 can be lodged without penalty until 31 December 2023.
• Late and unpaid super guarantee contributions – If you didn’t pay the correct amount of super contributions to all eligible employees or you have paid after the 28 April due date, you will need to lodge a Super Guarantee Charge.
• Debts on hold – View any debts on hold and offset transactions in the ATO online services.

Helpful webinars

• Claiming small business tax deductions: This 60-minute session will help you know which deductions you can claim and when you can claim them. The session also covers what records you need to keep.
• Using your business money and assets: This 60-minute session will go through the options -and their requirements - so you can be sure you’re paying yourself correctly.

For more information, visit the ATO’s Supporting Your Small Business page.