Get your tax documents ready 

The sooner you get your documents in, the sooner you can focus on what matters most—growing your business. The earlier you get everything organised, the smoother the process can be.

If you happen to be a year or more behind on your tax lodgements, be sure to send your documents through asap to give us plenty of time to prepare and lodge prior to 31 October 2024. Lodging by 31 October 2024 will ensure no late lodgement penalty imposed for the 2024 year at least – the Tax Office has become a little overzealous with imposing late lodgement penalties of late!

Small Business Energy Incentive: Save on energy-efficient upgrades 

If your business has a turnover of less than $50 million and you’ve invested in energy-efficient upgrades or new assets this year, you might qualify for the Small Business Energy Incentive. This incentive allows eligible businesses to claim a bonus deduction equal to 20% of the cost of assets or improvements aimed at enhancing energy efficiency. This deduction is available on top of other existing deductions, making it a valuable opportunity for businesses to lower their tax liability.

Key Points:

• Eligibility Period: Applies to assets first used or installed for taxable purposes between 1 July 2023 and 30 June 2024.
• Eligible Expenses: Includes costs for improvements to existing assets that promote energy efficiency.
• Maximum Deduction: Up to $100,000 of total expenditure is eligible, with a maximum bonus deduction of $20,000 per business.

If you work from home, the ATO’s Fixed Rate Method (67c per hour) lets you claim a set rate per hour worked, covering common expenses such as:

• Internet and phone costs
• Electricity and gas
• Office supplies

Important to Note:

• You do not need a dedicated home office to use this method.
  
  
• If you claim the 67 cents per hour (Fixed Rate Method), you cannot claim a separate deduction for these expenses:
  • Internet expenses
  • Home and mobile phone expenses
  • Electricity and gas used for heating, cooling and lighting
  • Stationery and computer consumables (printer ink, paper etc.)
    
    
• However, you can still claim deductions for:
  • The decline in value of assets used while working from home, such as computers and office furniture
  • Repairs and maintenance of these assets
  • Cleaning costs, if you have a dedicated home office

You do not need a dedicated home office to use this method, and it simplifies your home office expense claims. 

Helping you through Tax Time 

Paul Tucker – Managing Partner, SCM Accounting and Advisory
Ian Bennet and Pramesh Billimoria – Principals, SCM Accounting and Advisory