Friday, May 21, 2010

End of Financial - reduce your tax bill

With the end of the financial year fast approaching there are some decisions that need to be made which will determine how much tax you pay.

One of the biggest things for Australian Business entities to consider is the expected lower tax rates for next year, this offers considerable incentive to defer as much taxable income into the 2010/11 tax year.

Two main ways to do this:
  1. reduce or defer income and
  2. increase deductible expenses.
Also, those of you that qualify as small business entities, are you claiming the available tax concessions?


  1. Please explain fuel tax credits

  2. Fuel tax credits were introduced on 1 July 2006 for fuel used in heavy vehicles and in a range of other business activities. Eligibility was expanded on 1 July 2008 as part of a gradual implementation, up to 1 July 2012, to cover taxable fuels used in other business activities, machinery, plant and equipment.

    This means most businesses can access fuel tax credits – it is just the rate that varies, depending on your business activity

    Fuel tax credits provide you with a credit for the fuel tax (excise or customs duty) included in the price of fuel you use in:

    * business activities
    * machinery
    * plant
    * equipment
    * heavy vehicles.

    The only fuels that are not eligible are:

    * aviation fuels
    * alternative fuels
    * fuels you use in light vehicles of 4.5 tonne gross vehicle mass (GVM) or less travelling on a public road.