TAX TIME TIPS

    It’s that time of year again!

    This year there’s some new incentives for businesses large and small, plus some great deductions available to individuals too (salary and wage workers).  There’s the instant tax write off scheme for businesses and big some changes for individuals.

    We’ve got some top tips for understanding the recent changes, to help you get through tax time, maximise your return, and also some great ideas on best gear to help with you get the job done at work. 

    Whether you’re a tradie, wage earner or business you’ll find some great ideas and deals in our Tax Time Sale

    Check it out here www.autobarn.com.au/catalogue

    With the incentives available until June 30, there’s never been a better opportunity to make the most of tax time.

    Changes for Individuals

    There are stimulus payments to consider, new rules around claiming working from home expenses, and no more group certificates, just to name a few recent changes.  We’ve got some handy tips below, but for a start, here’s a great little article that explains some of the changes you’ll see this year.

    https://www.news.com.au/finance/money/costs/new-tax-rules-you-need-to-know-before-the-end-of-financial-year/news-story/9b4e90c2d33208189adcdcc9a9a51919

    INSTANT ASSET WRITE OFF – What is it?

    Often also referred to as the Coronavirus Stimulus, the Morrison Government’s Economic Stimulus package, effective until June 30 2020, includes the ability for eligible businesses to instantly write off assets up to $150,000.

    This is up from $30,000 and now covers businesses with an annual turnover of less than $500 million.

    So, under this scheme, businesses may claim a tax deduction for the business portion of the purchase in the year the asset is first used (or installed ready for use).  In many cases, this means straightaway – claiming inside this financial year. 

    If you have some much-needed gear to help you get the job done…  NOW is the time.

    Note that as of July 1 2020, the instant asset write-off threshold will reduce to $1,000.  The eligibility will also then be reduced to businesses with an annual turnover less than $10 million.

    Here’s a handy link to read more about it. → https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

    Ideas:

    We’ve got heaps of products and solutions to help tradies get the job done, businesses get the gear they need, and wage earners great deals – so you can get more for your tax time spending.

    For starters, we have the Tax Time sale running, with loads of great deals. 

    Check it out at www.autobarn.com.au/catalogue

    Depending on what you need for your business or profession, here’s some categories to browse, to get you started:

    For Businesses and Trades:

    • Tool Boxes – Browse here
    • Portable Power – jump start your car, even charge your phone. Find them here
    • Getting the job doneTools & Tool Kits
    • Cleaning up after yourself Pressure Washers
    • Workshop Equipment – you’ll find it all here
    • Protecting your Work Vehicle – Car Covers, Seat Covers & Protectors, Tie Down Straps, Dashmats… All here.
    • Keep it stored safely – with Roof Racks & Luggage Pods

    For Individuals (and Businesses):

    • Spare PartsBrowse what you need to service your vehicle
    • Dash Cameras – Don’t get caught out without evidence. Big range here
    • UHFStay in touch for all your work travels and adventures.
    • Car Safety & SecurityBrowse the range for peace of mind
    • Body Repair & PaintsTouch it up

    Am I eligible?

    For Tradies and Businesses – be sure to check the eligibility criteria first. 

    The key things to check for the ability to use instant asset write-off include:

    • Your aggregated turnover
    • Date you purchased the asset
    • The cost of each asset being less than the threshold
    • When the asset was first used or when it was installed and ready for use

    Also check for Excluded assets and details about claiming on Cars.

    What is eligible?

    Know what you can deduct on - a good way to be sure is to check the ATO website here: https://www.ato.gov.au/General/Tradies---be-certain-about-what-you-can-claim/

    What do I do next?

    Check out these links for more info about working out your deduction, plus examples and tips about later sale or disposal of your assets.

    More Tax Time Tips

    • Travelling often for work purposes? Many motor vehicle expenses are deductable.

    It’s best to hold on to all your receipts to maximise your return and even better to carry a logbook for all kms done for work.   Deduction opportunities include:

    • Fuel & Oil
    • Repairs & Servicing
    • Insurance
    • Registration 
    • Rather than try and keep track of hardcopy receipts and risk losing them, take a photo or screenshot of all your receipts straightaway. Then store them all on your phone, or even on a free account on something like Dropbox or Google Drive.  
    • Did you Know? The best time to do your tax return is generally between mid-August to September. This helps you to take advantage of the pre-fill information available in myTax or with your tax agent. You don’t need to stress about getting it done as soon as July 1 ticks over and definitely don’t leave it too late.  But NOW is the time to make sure you take advantage of key deductions to maximise your return.  
    • Make sure you request email copies of your phone bills, so you can claim on work-related calls. 
    • If you need to do work outside, or require protective/ safety equipment, there’s plenty of deduction opportunities there too, including:
      • PPE
      • Sunscreen, Hats & Eyewear
      • Work Boots
      • Work Clothes/ Uniform 

    Hopefully these tips help you get through tax time.  If you’re unsure on anything, it‘s always best to contact the ATO or speak to a registered accountant regarding your tax lodgement.