Managing my tax
Deductions
Generally you can claim a tax deduction for expenses incurred in carrying on your business. For example business expenses such as employee wages, business travel away from home, motor vehicle expenses, advertising, phone, bank fees and charges, transport, freight and electricity may be deducted from your assessable income. The cost of fixed assets and capital expenses such as costs of establishing, enlarging or improving a business operation, may be depreciated over time.
Purchasing vehicles, equipment and assets can have a large impact on your cash flow. Before you spend your own money, consider the impact a large up front cost could have on your cash flow, and what else you could be doing with those funds.
Financing, renting or leasing could be an option, resulting in lower initial costs and improved cash flow. Your interest payments, lease or rental payments may be fully tax-deductible if the goods are used for business purposes. An added benefit is generally an ability to update to the latest models and technologies.
It is best to speak to a professional tax advisor about your business situation to see what deductions and benefits there may be for you.
Review your options
Things you should know
- The statements above do not constitute tax advice or any recommendation as to the suitability of the product, and are based upon current tax laws and their interpretation. You should seek your own independent professional tax advice on any taxation matters including the taxation obligations.
