Updates take place in every industry every year. Similarly, for the year 2020 too, there might be some changes in the finance sector.
Let’s take a look at some of the tax tips for the year 2020:
A. Immediate deduction : This is a boon for small business owners in Australia. For every business that costs less than 20,000 dollars, the business portion for most of the assets is deducted.
This option is best for new as well as second hand assets. Just make sure that the deduction you are claiming is appropriate.
The rent and repair expenses are paid beforehand.
B. Instant Asset Writeoff : Small business owners can claim assets of upto 20,000 dollars. According to the instant asset writeoff, when you purchase any asset for business , you can claim the deduction of up to 20,000 dollars. This is useful for those who are self employed.
C. CGT changes : Australian government is clear about capital gains tax concessions and how small businesses can avail them.
These also change when owners sell their business.
D. Income Tax Offset : If the small business is unincorporated, the owner is likely to be eligible for small business income tax offset.
At present, it is 8% of the payable tax on the business income.In the coming years, it will increase to 16%.
When entrepreneurs support this offset,they are motivated to boost productivity and bring innovation in the Australian Economy.
E. ATO’s Watch list: Every year during tax time, ATO provides its watch list to the people. Every business owner must keep this list in mind.
This year it is focusing on the work expenses for car use, home offices and laundry. Those working from home can claim deductions for work furniture, heating and cooling of the room, computers and equipment you have used in your home office.
Only those working from a separate office area can claim for the deductions. Those working from anywhere cannot do so.
Final notes :
Keeping these tips in mind, it will be easy to deal with taxes in 2020. Yet, for any assistance
you can always hire a tax pro.
