Tax time- get organised this year

Tax time- get organised this year

When you own and run your own business it can be hard to stay on top of the administration side of your business, especially the finances and making sure you have a list of all of the items you are eligible to claim for.

Being a tradie allows you to claim some tangible items when it comes to tax time. I can’t stress enough how important it is to make sure you claim as much as you can every year to ensure you are getting maximum benefits from your business. 


It’s important to be organised, make sure you have all receipts and are able to be accountable for all expenses that can be written off or claimed.- You do not want to be paying more tax than you should! We want to make sure you can claim the maximum you are entitled to- do not leave money in the pockets of the ATO! There are apps that can take photos of the receipt and store it for you (and upload to your accounting software).


I have created a list of the general items a tradie can claim- you may be able to claim more than what I have listed- check with your tax agent.

  1. If you own a small business, you can immediately deduct the business portion of the cost of eligible new or second-hand depreciating assets purchased for your business from 7.30pm AEDT on 6 October 2020 until 30 June 2022 – see Temporary full expensing.
  1. For assets purchased before this period, you can immediately deduct the business portion of the cost of eligible new or a second-hand depreciating asset where it costs less than the relevant threshold amount – see Instant asset write-off.

Equipment:

  • drills
  • electric sanders
  • electric saws
  • grinders
  • leaf blowers
  • lawn mowers
  • nail guns
  • ladders
  • tool boxes
  • work lights
  • high-pressure water cleaners
  • concrete mixers
  • shelving and storage
  • computers, laptops and tablets.
  • items that protect you or your employees from a health or injury risk in your work environment
  • drop sheets
  • masking tape
  • gaffer tape
  • oil
  • replacement belts for machines.
  • fuel and oil
  • repairs and servicing
  • small-value mobile phone and tablet accessories

Cars:

  • interest on a motor vehicle loan
  • lease payments
  • luxury car lease
  • insurance cover premiums
  • registration
  • depreciation (decline in value).
  • purchase costs

Operating expenses that are common in business include:

  • purchases of trading stock/materials, including delivery charges
  • advertising and sponsorship
  • public relations
  • legal expenses, such as those incurred defending future earnings, borrowing money, discharging a mortgage or obtaining tax advice
  • tender costs, even if the tender is unsuccessful
  • bank fees and charges
  • insurance premiums, including accident or disability, fire, burglary, professional indemnity, public risk, motor vehicle, loss of profits insurance, or workers compensation
  • interest on money borrowed for    
  • costs for running a commercial website
  • internet service provider fees
  • subscription fees for off-the-shelf software
  • transport and freight
  • waste removal and recycling
  • parking fees (but not parking fines)
  • small-value items costing $100 or less
  • union dues and subscription fees to trade, business or professional associations
  • trade licence fees
  • clothing expenses (branded corporate wardrobes or uniforms and occupation-specific and protective clothing such as, hi-vis vests and steel-capped boots)
  • items that assist outdoor business activities (such as safety glasses, sunglasses, sunhats and sunscreen)
  • stationery
  • expenses relating to education and technical or professional qualification
  • subscription costs for business or professional journals, information services, newspapers and magazines
  • gifts and donations to organisations that have a deductible gift recipient status

If you have employees you can claim:

  • salary and wages
  • fringe benefits, including the cost of any fringe benefit provided and the associated fringe benefits tax
  • protective clothing required for employees to carry out work activities
  • allowances and reimbursements paid to employees who use their own mobile device for work purposes
  • travel expenses for relocating employees
  • losses due to misappropriation of money by an employee or agent, for example, fraud, theft or embezzlement

Running your business from a bricks and mortar premises:

  • electricity
  • landline phone calls and line rental
  • mobile phone calls (prepaid or as part of a plan)
  • internet service fees
  • data plans
  • cloud storage
  • water
  • renting or leasing business premises
  • rates
  • land tax
  • security costs

Tax-related expenses include:

  • registered tax agent and accountant fees
  • tax-related expenses, such as  


This may feel like a really long list, however there may be parts you cannot claim in your specific situation, or there may be more items that you can claim due to the nature of your work. 

The end of the financial year is just around the corner so I recommend that you start to get your ducks in a row so that you can get as much back as possible this year!

For advice like stocking up on things you’re going to sell quickly, prepaying your insurance premiums and interest for the next year, as well as accounting fees. Book your tax planning session now!

Book here Book here



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