3 Ways Beauty Business Owners Can Get More Back From Their Tax Return This EOFY

The Australian Taxation Office (ATO) has issued a reminder to small business owners to consider important factors before June 30, 2023.

These factors can significantly impact the financial returns of small business owners, including those in the beauty industry, when they complete their tax return.

A report released this week by the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, states that almost 98 percent of businesses in Australia are small businesses. Among these businesses, 89 percent are self-employed or have up to four employees.

The current financial year, 2022-23, concludes this Friday, June 30. Small business owners are advised to keep in mind three key things before this deadline. Firstly, they can now benefit from a new small business boost. Secondly, the provision of temporary full expensing will no longer be applicable. Lastly, there will be changes in deduction rates.

ATO Assistant Commissioner Emma Tobias encourages small business owners to consult their tax professionals if they believe these factors are relevant to their businesses, especially with only a few days left in the financial year.

Small business boosts

There are currently two new small business boosts available. The Small Business Technology Investment Boost aims to assist small businesses with an annual turnover of less than $50 million by allowing them an additional 20% tax deduction to support their digital operations and digitization processes. The Small Business Skills and Training Boost provides a 20% tax deduction for external training courses offered to employees by registered training providers, targeting small businesses with an annual turnover of less than $50 million.

Temporary full expensing

Temporary full expensing (TFE) will end this Friday. This means that if a small business has not already utilised or installed assets ready for use by this time, they will no longer be eligible to claim an immediate deduction on the cost of eligible assets when completing their tax return.

Deduction rate changes

Lastly, deductions for running a business from home and car expenses have changed this tax time. The new cents per kilometer rate is 78 cents for the 2022-23 financial year, and the car limit has increased to $64,741 for the same period.

For more information, please visit the ATO website.

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