Alt tax + Accounting in Cronulla, New South Wales, Australia | Business service

Alt tax + Accounting

Locality: Cronulla, New South Wales, Australia

Phone: +61 2 9544 4676

Address: 10/17 Surf Road 2230 Cronulla, NSW, Australia

Website: http://www.alttax.com.au/

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• Business service
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12.01.2022 The most frequently asked area of the budget conditions we are asked is regarding the ability to fully deduct (some) assets. Here is some information that might help you. If it confuses you, contact us, 02 9544 4676. From 7:30pm (AEDT) on 6 October 2020 until 30 June 2022, businesses with turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed. For small and medium sized businesses, with aggrega...ted annual turnover of less than $50 million, full expensing also applies to second-hand assets. A trucking company will be able to upgrade its fleet, a farmer will be able to purchase a new harvester and a food manufacturing business will be able to expand its production line. Here is an example that might help you better understand this. Bogan Builders Pty Ltd has aggregated annual turnover of $6 million for the 2021-22 income year. On 1 July 2021, Bogan purchases a truck-mounted concrete pump for $1 million, exclusive of GST. Bogan’s taxable income (profit) for 2021-22 was $600,000 before the purchase. Without temporary full expensing, Bogan would claim a tax deduction of around $300,000, resulting in a taxable profit of $300,000, and a tax bill of $90,000. Under temporary full expensing, Bogan will instead deduct the full cost of the asset of $1 million, resulting in a tax loss of $400,000. Under temporary loss carry-back, Bogan offsets this tax loss against profits in 2018-19, resulting in a tax refund of $120,000. Without the refund, the company may have had to defer the investment until their cash flow position recovered, or may not have purchased the new pump at all.

06.01.2022 Succession Planning A fancy name for an everyday event. We find that planning for your exit from your business is very much a topic that many business owners do not spend any time, or money, on. In many ways, this is most important when you have a business partner. Retirement is not the only way to get out of business. Often, one partner has just had enough. Or, the other partner has just had enough of you. How do we arrange for them to exit the business? Is there a payment ...required? If so, where is the money coming from, and very importantly how much will that payment be? There are so many things to consider with a business exit, and this is where planning is super important, hence the term succession planning. Succession planning can be of great value to smaller organizations that have fewer resources available for knowledge management programs and the formal, structured development of employees who might be able to take over the business. There are just too many matters that need to be considered to list them here. Here at ALT Tax we have a simple list of questions that you might need to consider for exiting the business. Early attention to this can save much heartache and expense, not to mention surprises, when the time comes to leave. Its also very important to remember that sometimes we don’t exit a business out of choice. Sometimes we are forced out due to illness, divorce, death. What type of mess and stress do you want to leave to your family? What is your business worth and can you sell it? Most business owners are shocked and dismayed at the real answers. Lets have a chat about some of these things, we all need to start thinking and then planning, for an exit. Or a merge. Or a takeover. Or a sale. ALT Tax 02 9544 4676 See more