EOFY is approaching, time to sort your FBTs and IAWOs
With just a week left in June there’s one thing every small business owner is thinking about: the end of the financial year.
It’s fair to say this year has been unlike any other, so it’s more important than ever to ensure you get the best possible result for your business throughout this period.
The first thing to be aware of is fringe benefits tax, which will look very different for many businesses and their employees this year.
Whether it’s a company car, accommodation credits, or meal allowances, these are an important way that many businesses structure their salaries, and the tax on those is generally due on 28th May but has already been deferred to 25th June.
It’s important with everything that has happened in recent months that business owners don’t neglect that FBT deadline, but it is also worth noting that if you need an extension on submitting that paperwork you can get your accountant to ask the tax office for one, or you can email the ATO yourself to arrange it.
There will likely be fewer fringe benefits being offered by businesses this year, but if you are offering them make sure you don’t neglect those deadlines.
The other big opportunity I’d like to highlight is the instant asset write-off scheme, which is a fantastic opportunity to build your business for the future.
Whether you’re looking to upgrade hardware, purchase a new company vehicle, or install new systems, this scheme allows you to make the purchase and claim a full deduction.
Currently the government has not yet confirmed whether this scheme will stay in place beyond 31st December, and while I think there’s a chance that it will go for longer, the time to utilise it is now.
The scheme is in place for purchases up to $150,000 so if there are expenses that you do want to engage in, even if you may not need to utilise it until later in the year, the time for that purchase is before 30th June.
As always, stay within your budget, but look at ways to grow your business in this tough time.