TIPS FOR BUSINESS
Review salary sacrifice arrangements where employees have foregone gross salary to obtain a packaged car given recent changes to fringe benefits tax. Make and document trust resolutions for the 2011/12 year by June 30, 2012, to ensure a trustee is not taxed on the trust’s taxable income at 46.5 per cent or default beneficiaries are inadvertently subject to tax. Stream trust capital gains and franked dividends where the trust deed allows the trustee to make a beneficiary “specifically entitled”. Comply with Division 7A as the Australian Taxation Office is cracking down on businesses that use the funds or assets of a private company for personal purposes. Ensure any unpaid entitlement owed by trustee to a private company beneficiary is not treated as a deemed dividend to the trust. Write off bad debts before they are forgiven to ensure you can claim your bad debt deductions. If you’re an eligible small business entity, maximise deductions for depreciating assets. If you’re an eligible small business, consider deferring work car purchases until July 1, 2012. If you’re an eligible small business, claim the entrepreneur’s tax offset. This tax year is the final year this can be claimed by eligible taxpayers. Pre-pay your private health cover. You may be aware the rebate for private health cover will be means tested from July 1, 2012. If you are a single earning more than $84,000 or a couple earning more than $168,000 a year, the 30 per cent rebate will be scaled back on a sliding scale. If you know that your earnings in 2013 financial year will exceed these limits, you may be able to pay your private health cover in a lump sum now, and get the maximum rebate. From 2012-13 the small business instant asset write-off threshold has been increased from $1000 to $6500. The long-life small business pool and the general small business pool have been consolidated into a single pool to be written off at one rate. Small businesses can claim an accelerated initial deduction for motor vehicles acquired in 2012-13 and subsequent years. These amendments only apply to small businesses that have an aggregated turnover of less than $2 million. Aggregated turnover includes the annual turnover of the small business and the annual turnovers of any connected or affiliated businesses.