Local Accountants and the new Federal Budget
The Federal Budget announced in May 2015 a number of changes that could impact your trade business.
The following sections discuss important points on how to adapt to the budget while protecting and ensuring continued financial success.
As for tradies managing a business, it is especially important to talk to your local accountant to understand how best to take advantage of the changes and gain some extra tax benefits.
5 Things to Discuss with Your Accountant this year
- If you own and operate a tradie business with annual revenue of less than $2 million, you may be eligible for an immediate tax write-off of items purchased that are less than $20,000. Find out if equipment purchases, website upgrades and new business vehicles are eligible for write-off. Anything over $20,000 is not eligible for the instant write-off, but may qualify over a period of tax years. Ask your accountant how that works for your tradie business.
- Are your new contracts following the new laws and restrictions for your trade and licensing requirements? The expenses you incur from hiring professionals to help you get compliance may be deductible.
- Tradies with revenue of under $2 million may also notice their tax rate has been lowered from the 30 per cent to 28.5 per cent.
- Are you covered with income protection? If not, now is a good time to speak to a good financial planner and get covered. Income protection insurance for your trade business is not only another deduction you claim, but most importantly protects you if you are injured and cannot work.
- Ask your accountant if you can use loans from mortgage brokers as expenses that can be written off and what other expenses fall under the Federal Budget.
What can you do right now?
The only way to make sure that your taxes are done right is to talk to a local accountant about what you can and can’t write off, including how the new Federal Budget will affect your tradie business financially for this year and next.
Who else should you talk to?
If you don’t have income protection, loans, promotional materials, a marketing plan, a website, or a local book keeper for your business, now is the ideal time to start talking to the professionals who can help you.
Need Help Finding Accountants and Financial Professionals For Your Business?
If you do need a good finance broker, mortgage broker, income protection specialist, accountant or book keeper to help you with your tradie business, try contacting one from our Tradebusters Academy network. These professionals specialise in helping tradesmen in business and we are sure one would be a good choice for you.