Lodging your tax return needn’t be a difficult or unpleasant experience. Seeking the correct financial and taxation planning advice can help you save money and set yourself up for the future.
Principal of Mudgee Tax and Accounting, Denis Yeo, has been a practicing chartered accountant and registered tax agent for 31 years and is joined by son Leland (Bachelor of Economics and Finance and a Masters in Professional Accounting).
The duo believe that now is the ideal time to get professional financial guidance.
“The recent Federal Budget, unlike those over the last few years, presents very stark opportunities and challenges for different taxpayers,” Denis said.
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The recent Federal Budget, unlike those over the last few years, presents very stark opportunities and challenges for different taxpayers.Denis Yeo
Tax breaks for small businesses and farmers
From July 1, 2016 a small business is defined as having sales or gross income of up to $10m, up from $2m.
One of the most popular incentives has been the immediate write off (tax deduction) for capital expenditure of up to $22,000 per item, GST inclusive (or $20,000 if not registered for GST). This concession has been extended to June 30, 2018.
Primary producers can currently claim 100 per cent of all fencing, water supply storage and reticulation expenditure. Farmers can claim fodder storage costs and, depending on cost, items can be claimed upfront or over three financial years.
Denis and Leland can advise clients on when best to purchase large items or how to use farm management deposits to effectively smooth out a farmer’s taxable income between financial years.
The Budget removed two negative gearing tax deductions, effective May 9. Travelling expenses to inspect a property can’t be claimed and extensive depreciation claims obtained by the use of quantity surveys or tax depreciation schedules have been substantially axed.
Now is the time to seek superannuation advice because many concessions will be significantly reduced on July 1. For example, there are reductions to contributions, and new incentives for first home buyers and empty nesters downsizing.
There are many changes that may impact your tax liability, so don’t be unprepared, make an appointment with Denis or Leland.