Yesterday’s budget had two positive points for SMB, which need the instant attention of many of our clients. This is we are now in this financial year.
The first is that the immediate asset write-off goes for another 12 months. Facts have proved that this is an excellent way to increase cash flow. If you can get this money, it is shameful to miss it.
Now I am not an accountant, but this is my understanding of how it works.
Suppose you paid $27,500 in taxes two years ago. Last year there was nothing. This year, you are looking for a tax loss of $25,000. Assuming you pay 26%, you now owe ATO about $6,500
Since $6,500 is less than the $27,500 you already paid. When you file your tax return this year, you may be able to request a refund on the $6,500 based on what you had paid two years ago.
Due to some exceptions, not all tax losses are claimable here. If so you may not be able to cash the tax losses as described above.
So, you may find that some pre-planning may help you now. So please *immediately* ask your accountant about these two items.