Welcome to the Small Business Treasure chest. I have had a look inside and found some amazing jewels to share with you. Join me over the next few days to view these very helpful tips that will help you reduce your Income Tax for 2020. The first jewel I have found is the Instant Asset Write-off. This enables you to claim an immediate deduction for the full value of a…
Cash Flow, Small Business, Taxation
Many of my clients and business owners have been asking me about how the Jobkeeper Payment scheme will actually operate. Below are some of the most relevant questions that apply to small businesses. Question 1 Can a sole trader who has employees also qualify for the JobKeeper Payment? Answer is Yes. On the basis that the sole trader’s business has satisfied all the requirements to qualify for the JobKeeper…
Easier Home Office Expense Claim The Australian Taxation Office (‘ATO’) has announced a temporary simplified short cut method to make it easier for individual taxpayers to claim deductions for additional running expenses incurred (e.g.,additional heating, cooling and lighting costs), as a result of working from home due to the Coronavirus pandemic. Refer to the ATO’s Media Release of 7 April 2020. The ATO will allow individuals to claim a deduction…
Cash Flow, Small Business, Taxation
1) Employer affected by Covid-19 with multiple employees Adam owns a business whose turnover has declined by more than 30% as a result of the downturn due to the Coronavirus. The business had the following three employees as at 1 March 2020: • Anne, who is a permanent full-time employee and who continues to work in the business earning a gross salary of $3,000 per fortnight. • Nick, who is…
Cash Flow, Small Business, Taxation
There are 2 types of businesses in Australia. Those that employ staff and those that don’t. The number of businesses as at 30 June 2019 that don’t employ staff makes up 61% or 1.4 million of the total 2.4 million businesses in Australia, as well as 33% of the GDP created in Australia based on a recent Australian Bureau of Statistics report. These are enormous numbers and involve a huge…
Cash Flow, Small Business, Taxation
The Federal Government has announced stage 2 of its economic plan to cushion the economic impact of Coronavirus. Read about the stage 1 package HERE. The 4 parts to the plan are listed below: 1. Boosting Cash Flow for Employers This applies to: A business or a not for profit entity or charity with an aggregated annual turnover of less than $50 million per annum ( based on prior…