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tax time tips from the ato.
Our Expert Advice for Tax Time
FROM AUSTRALIAN TAXATION OFFICE (ATO)
Tax time has arrived for 2024-25. As a retailer, staying on top of your financial records, accurately claiming your expenses and keeping on top of your employer obligations are crucial for a smooth and stress-free tax time. Here are some of our top tips for businesses to help you manage tax time this year.
You can claim a deduction for most expenses directly related to earning your assessable income - this includes association fees*.
Good Record Keeping Makes for An Easier Tax Time
It sounds cliché, but you should be preparing for tax time all year round. When it comes time to lodge your return, it pays to have your records well organised and easily accessible. Using digital software can help you keep track of your receipts and invoices for your expenses, your bank statements and your payroll records. Don’t forget, you need to keep your business records for 5 years.
Managing Your Deductions
You can claim a deduction for most expenses you incur running your business, so long as they are directly related to earning your assessable income. If you’re not sure about what to claim, here are the 3 golden rules:
The expense must be for your business –not for private use.
If the expense is a mix of business and private use, you can only claim the portion that is used for your business.
You must have records to prove it.
Remember, you need to keep all business records for five years. This includes records that substantiate the deductions you claim in your tax return.
For more information on business tax deductions, visit the business deductions page.
Don’t Forget the Instant Asset Write Off
If you’ve upgraded your equipment or fitted out your retail outlet, make sure you’re aware of the instant asset write off. Businesses with a turnover under $10 million can deduct the full cost of eligible assets that cost less than $20,000 for the 202425 income year. The $20,000 limit applies on a per asset basis, so small businesses can instantly deduct the full cost of multiple assets, as long as the cost of each asset is less than the limit. Find out more at ato.gov.au/IAWO
Stay Up-to-Date on Superannuation
If you’re a retailer with employees, it’s important that you know that the super guarantee (SG) rate will increase to 12% on 1 July 2025. This means you need to calculate SG contributions at 12% for your eligible workers for payments of ordinary time earnings you make from this date. Your SG contributions for the quarter ending 30 June (which are due by 28 July 2025) are still calculated at the 11.5% rate for payments made prior to 1 July. Make sure you pay your super contributions on time, in full and to the right fund.
Seek Advice
If you need support or advice, talk to a registered tax professional about your situation. They can help you to review your financial records and give guidance on how to manage your tax. Additionally, they can help identify potential deductions and ensure you’re complying with all your tax obligations.
*excludes any registration or joining fees.
You should be preparing for tax time all year round.
CONTACT | Australian Taxation Office (ATO) ato.gov.au/contact-us
