We’ve come across another couple of tax saving tips for small business owners that don’t seem to be very widely known that we thought we’d share with you.
Two Not Commonly Known Tax Saving Tips for Small Business Owners
The first relates to the federal government giving away money to anyone who earns less than $50,454 for the 2015/16 year if they make a non-concessional contribution to their super fund. Essentially, providing you satisfy a work test, an income test and an age test you are eligible for a government co-contribution.
If you earn less than $35,454 for the 2015/16 year, the federal government pays 50 cents for every after-tax dollar that you contribute to your super fund, up to a maximum of $500 a year. So if you make a $1,000 contribution, then your super fund receives a $500 tax-free contribution from the Government.
If you earn more than $35,454 but less than $50,454, your co-contribution entitlements reduces by 3.33 cents for every dollar you earn over $35,454. So for example if you earn $45,000 and you make an after-tax contribution of $1,000 the Government’s co-contribution is reduced to $182.
To be eligible individuals must earn 10% or more of your income from eligible employment or from carrying on a business or a combination of both. If you’re over 65, you must work for at least 40 hours in a period of not more than 30 consecutive days in the financial year in which the contribution is made. And finally, you must be under 71 at the end of the financial year that you make the after-tax contribution.
The other thing to draw your attention is one of our tax saving tips for small businesses that we often get asked about is that to be able to lodge a Family Tax Benefit claim, you need to ensure that you lodge your tax return prior to 30 June.
Interested to learn more?
If you’re interested in learning more about tax saving tips for small business owners or for specific advice tailored to your business situation; Get in touch with our business tax reduction team from Taggart & Partners on (07) 3391 1188 or email us at info@taggartandpartners.com.au and make sure your business is paying the right amount of tax.