June 2015 Edition-Business Taxpayers

Business Taxpayers 

Maximising your deductions

Business Taxpayers

Maximising your business deductions will reduce the overall tax that you will pay as a business. Below is a list of items that should be reviewed and considered:


  • Taxpayers should review all outstanding debts prior to year-end to determine whether there are any potential debtors who will be unable to pay their bills. Once a taxpayer has done everything in their power to seek repayment of the debt, the taxpayer could consider writing off the balance as bad debt.
  • Unlike other creditor payments of superannuation on behalf of employees are only deductible when paid. So even though your SGC liability is not due until after the year end it is worthwhile to pay this before the year end in order to bring forward the deduction to the current year.
  • A deduction may be available on the disposal of a depreciating asset if a taxpayer stops using it and expects never to use it again. Therefore, asset registers may need to be reviewed for any assets that fit this category.
  • Bring Forward Expenses: purchase consumable items BEFORE 30 June 2015. These include stationery, printing, office and computer supplies.
  • Ensure that you have kept an accurate and complete Motor Vehicle Log Book for at least a 12-week period. The start date for the 12-week period must be on or before 30 June 2015. You should make a record of your odometer reading as at 30 June 2015, and keep all receipts/invoices for motor vehicle expenses. Should the nature of the travel, vehicle or business use % have not changed you can use the log book for a 5 year period.
  • Prepayments: Small Business taxpayers (turnover <$2m) can make prepayments (up to 12 months) on expenses (e.g. loan interest, rent, subscriptions) BEFORE 30 June 2015 and obtain a full tax deduction in the 2015 financial year.


If you have any questions about preparing your business for the end of the tax year, please contact the team at Goodwin Chivas & Co.

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