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For your business and personal tax, deductions are not the only way to save money and get ahead financially come tax time.

Often, charges are imposed by the Australian Tax Office (ATO), such as general interest charge (GIC) and penalties. Most clients simply accept and pay these costs as imposed.

In our experience, when approached, the ATO is often willing to consider personal circumstances and upon request will review client’s accounts.

At Lyons Judge we have had great success over the past 12 months in having large amounts of GIC and penalties remitted for our clients. It is worth reviewing your ATO accounts to see if you have been charged GIC and penalties that could be remitted.

If you are behind in your business activity statements (BAS) and tax lodgements come tax time, it is important to avoid a head-in-the-sand mentality.

Even if you are concerned about tax debts, you still need to get your BAS and tax lodgements done. We have found the ATO is very reasonable about payment plans and the outcomes for clients are often surprising.

Ensure you speak to your tax professional about rebates and concessions, as clients often overlook these in their income tax returns, especially those available to small business owners.

The Small Business Income Tax Offset provides business with a tax offset of up to $1,000 each year, worked out as a proportion of tax payable on your business income.

Everyone that earns below $126,000 should be receiving a low and middle income tax offset again this year, an additional tax offset up to a maximum of $1,080.

Offsets are also available for super contributions on behalf of your spouse. If you are a higher-earning individual with a lower-earning spouse, you may be entitled to a tax offset of up to $540 per year if you meet the eligibility criteria.

Grants and assistance programs may also help businesses. Visit www.grants.services.qld.gov.au.

 

Karen Peall is the Executive Manager of Lyons Judge Bundaberg and has more than 20 years’ experience in accounts and taxation.