The ATO has reminded small businesses of three tax concessions they might wish to take advantage of in the final days of the 2018-19 financial year.
The first tax concession is the instant asset write-off.
Small businesses that purchase assets before 30 June may be able to fully deduct them in their 2019 tax return.
“The asset must have cost less than the threshold that applied when it was first installed and ready for use,” according to the ATO.
The second tax concession is prepaid expenses.
Expenses such as rent, registration fees and insurance that are paid before 30 June, and which end in the next financial year, can be claimed as a deduction in this year’s tax return.
The third tax concession is a simplified trading stock calculation.
Small businesses don’t need to do a stocktake if the estimated difference between your opening and closing trading stock is $5,000 or less.
“Instead, you can include the same amount for your opening and closing stock in this year’s tax return,” according to the ATO.