Answers to your tax deduction questions from A T Partners

I run a small business and have bought new expensive equipment this year. Am I entitled to the instant asset write-off that I heard about?

About the instant asset write-off
Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.

Instant asset write-off can be used for:

Multiple assets if the cost of each individual asset is less than the relevant threshold
New and second-hand assets.
If you are a small business, you need to apply the simplified depreciation rules to claim the instant asset write-off. It cannot be used for assets that are excluded from those rules.

The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business’s eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.

I just started my own business and do i need to register for GST.

If your business has an annual turnover of $75,000 or more are required to register for GST. If your business has a lower turnover, you are not required to register, but you can register for GST if you wish. You will only be required to charge your customers GST if you are registered.

I run a delivery business and have a 5 tonne truck which is getting very expensive to run. I have heard that the government gives rebates for the cost of fuel. How do I qualify for the rebate?

Effective from 1 July 2008, most businesses can claim fuel tax credits for running machinery, plant, equipment and heavy vehicles used in running that business. To be eligible to make a claim, the business must be registered for GST, and the claim should be made on the Business Activity Statement (BAS) that must be lodged. The amount claimed will depend on the fuel type and what it is used for. Fuel tax credits are unavailable where alternative fuels (e.g. LPG) are used.

I am self employed and have paid personal superannuation contributions all year. What can I claim?

Provided that you satisfy the eligibility criteria, you will be able to claim a deduction for the contributions you have made to a complying superannuation fund or retirement savings account. To do so you must be fully self employed or no more than 10% of your assessable income (including Reportable Fringe Benefits and Reportable Superannuation Contributions) is from an employer. You must also have first notified your superannuation fund of your intention to make the claim and received a confirmation.

I have my own business and am wondering how I can minimise my annual tax bill?

If your turnover is less than two million dollars, you will be classed as a small business entity (SBE). As such, you would be able to access several small business concessions. An SBE can use simplified depreciation rules, allowing for a full deduction of the total cost of depreciating assets costing less than $1,000. Most other assets are pooled and depreciated at a higher (accelerated) rate than that otherwise available. In addition, businesses that are SBEs or have a net asset value of less than $6 million can benefit from certain capital gains tax concessions.

Can self-employed people claim the superannuation co-contribution from the government? Am I eligible because I paid money into my super this year and I run my own business?

Suppose you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund. In that case, the government may also make a contribution (called a co-contribution) up to a maximum amount of $500.

The government co-contribution you receive depends on your income and how much you contribute.