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make the most sense, so now is the time to take the plunge. Whilst now isn’t the ideal time to make large capital purchases for many retailers, if your business needs to invest in new capital
EOFY TAX TIPS
With the end of the tax year approaching, it’s time to take action to minimise the tax liability for your retail business. Mark Chapman shares his top tips for end of year tax planning: 1 Take advantage of
temporary full expensing One of the best tax breaks
equipment and has the cash flow (or the borrowing capacity) to finance it, now is certainly the time because generous tax breaks like this will probably never recur. Amongst the items you
the same time, reduce your
could look at claiming are the
taxable profits.
following:
The tax break works by offering
• cash registers and other POS devices
for business is temporary full
an immediate deduction for all
expensing–which means that
capital assets against your profits
• delivery vans
you can score an immediate
for the year. There is no ceiling on
• store fittings and fixtures
tax deduction for the costs
the cost of assets you can acquire
• computers, laptops and tablets
of capital assets–and with
and provided your business has
• in store security systems
many businesses offering
turnover of less than $5 billion,
• accounting software
end of financial year (EOFY)
you are included.
2 Prepay expenses You can get an immediate
promotions, now is the ideal
Temporary full expensing runs
time of year for your business
through until 30 June 2022 but
tax deduction for certain pre-
to take advantage by acquiring
from a tax-planning perspective,
paid business expenses. The
some much needed assets to
purchases immediately before the
basic rule is that a deduction is
build your business and, at
end of the financial year always
available for expenses that cover
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