It pays to be meticulous and prompt when it comes to your tax obligations. After all, how you deal with this reflects on your business image and influences the growth of your company. You may even save more when you have a good handle on relevant tax issues.
In Australia, there are different measures when it comes to tax deductions for business. As taxes have everything to do with your income, you may claim most operational expenses your business insures as deductions. The rules depend on different factors such as the type of business structure and nature of expense. You can consult with our team of tax experts to know more about the parameters relevant to your situation.
Here are some tax deductions you can claim:
Capital Allowances and Depreciating Assets
Your corporate organisation may claim tax deductions if you have depreciating assets. These include motor vehicles, furniture, and equipment. Under the capital allowance rules, you may also claim other business-related capital expenses so long as you do not file them under another tax law. Land and trading stock are not considered depreciating assets.
Repairs, Maintenance, and Replacement Expenses
Whenever you repair machineries, tools, or facilities to produce business income, you may claim the expenses you incurred as tax deductions. Significant improvements like replacing almost the whole of an asset are not included, though; they are filed under other parts of the tax law. This means, you may only renew parts to fix the defects.
Research and Development Tax Incentive
Apart from tax deductions, you may also apply for tax incentive programs. R&D Tax Incentive, for instance, is specially made to help businesses offset their expenses for conducting research and development activities. The program is open to all firms that conduct eligible R&D operations which benefits Australia in any way.
It may only seem overwhelming at first, but tax breaks and deduction can help your business grow and still contribute to economic progress. With our professional assistance, you can settle your dues properly and on time, and save on tax expenses. Contact us to know more of our services.