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Monday, 18 June 2012

Do you have cashflow to maximize your deductions?

To gain the maximum tax deduction for your Employees Superannuation – try to pay your SGC prior to 30th June 2012.

If you have reasonable cashflow at this time – you may be able to maximize some deductions by:
  • getting your car serviced
  • replacing tyres if needed
  • paying membership fees
  • paying subscriptions fees upfront
  • paying insurance upfront, rather than monthly
  • get a discount on rent for prepaying
But only if cash-flow exists & only if it makes sense. No need to spend $1 now to save 30c or less that isn’t paid for months.

Also, remember that new Depreciation of Assets comes into effect from 1 July 2012, if your turnover is under $2million:
  • No more ‘long life’ pool for small business
  • Write off assets immediately if they cost less than $6500 excl GST
  • Motor Vehicles have a $5000 write off in the year acquired plus 15% depreciation in the first year
  • 2nd year onwards, Motor Vehicles then have 30%

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