Year-end Tax Planning – Small Business

 A checklist of a few items to examine further, before year-end.

The usual year-end items apply and in particular the deductibility of superannuation for any employee is dependent upon the payment being made, rather than the liability being incurred. This translates to making the payment before year-end to claim the tax deduction this year.

Despite all your events, you may not be entitled to a deduction because the superannuation fund fails to recognise the contribution and clearing houses do not simplify the timing problem.  The more time you give the super fund to process and allocate the better.

The other item following the recent Federal Budget is the $20,000 capital expenditure write off available to small business.  Some car dealers are indicating that vehicles are eligible, but in reality they are not.  How many new cars cost less than $20,000 (excluding GST)?  

Do you believe that a vehicle could be invoiced as the back half $15,000 and the front half $15,000 to have 2 items under $20,000?  Clearly that won't qualify.