I run my own business and am wondering how I can minimise my annual tax bill.
If your average turnover is less than one million dollars and your depreciating assets valued at less than three million dollars, you would be eligible to enter the Simplified Tax System (STS). As such you would be able to claim an immediate deduction of the full cost of depreciating assets costing less than $1,000. Most other assets are pooled and depreciated at a higher (accelerated) rate than that available to non-STS businesses. An Entrepreneurs Offset may also be available. From 1 July 2007 the eligibility criteria will change: average turnover must be less than $2 million
In addition to the possible tax savings afforded the STS taxpayer, there is a simplified method of accounting for trading stock.
I am running my own business and elected to enter the Simplified Tax System (STS) last year. Is there a new offset that I can claim?
The Entrepreneurs Offset is available for eligible STS taxpayers and applies from 1 July 2005. This offset allows a 25% reduction in the tax liability on the business income where the gross turnover is less than $75,000.