Innovative, legal & often overlooked ways you can reduce your business tax bill

Article by John Riseley

Businesses have many opportunities to legally reduce their business taxes. Most businesses and their associates routinely miss out on or don’t consider these opportunities. We don’t want you to miss out, so we strongly suggest that you review your tax affairs in the areas listed below.

Reduce business tax by reviewing your tax affairs in these areas

  • Wages expense incurred between pay dates crossing a financial year end can be accrued and deducted;
  • Tax deductibility of employee superannuation expense deductions can be brought forward relevant to the June quarter;
  • Director and or employee bonuses can be properly documented and accrued in the accounts even if paid in a subsequent year;
  • Small business with less than $10million turnover can access accelerated depreciation pooling arrangements;
  • Businesses with a turnover of up to $50million can immediately write-off up to $30,000 (ex gst) for each asset purchase;
  • Consider restructure to access the 27.5% – soon to be 25% – company tax rate for companies with turnover less than $50million;
  • Eligible Research and Development (R&D) activities can access tax deductions exceeding actual R & D costs;
  • Up to $25k per individual is tax deductible for superannuation contributions, is your family taking advantage of each cap?
  • Poorly structured company shareholdings can be restructured tax free utilising Small Business Capital Gains Tax Concessions;
  • Small Business Capital Gains Tax concessions can be accessed before companies grow through the Net Asset ceiling;
  • A holistic strategic review with your tax advisor to identify all opportunities possible is important for you.

Have questions? Get in touch with our tax accountants

If you have any questions about how you can reduce business tax, please contact our experienced tax accountants today.