Accountant Mooroolbark – Small Business Start-up Cost

Since the season of Tax Return 2016 is approaching, our Accountant Mooroolbark will start to provide some essential tax updates for Financial Year 2015/2016 (FY2015), which will be end soon in about 2 weeks. Understanding the latest tax changes for FY2015 before 30 June 2016 would help individuals and small business owners in the Mooroolbark local areas take the last opportunity to do some tax planning before it is too late for their 2016 Tax Return Mooroolbark.

Immediate deduction of expense for start-ups – Small Business Tax Mooroolbark

One of the important tax update for FY2015 will be the immediate deduction of expense for start-ups. If you have just start a small business in FY2015 or you are thinking of starting a small business very soon, this is one of the great incentives from the 2015 Federal Budget to encourage small businesses entrepreneurs.

Before the tax changes, new small businesses are not allowed to immediately deduct certain cost related to setting up a business including legal or accounting consulting expense. However, under the new law from 01/07/2015, small businesses and entities can fully deduct certain professional and government agency expenses if it relates to setting up a new proposed small business. The deductable expense can include:

  • Legal or accounting advice/services regarding the structure of the proposed business (e.g. what’s the best structure for the business) or the operation of the proposed business (e.g. the development of a business plan)
  • Payment to an Australian government agencies including costs related to creating the business entity (e.g. company set up fee) or costs related to transferring assets to new business entity(e.g. stamp duty)

Please be aware that some of the cost are not eligible for start-up immediately deduction, which includes:

  • The cost of acquiring assists for business future use
  • The direct costs of the capital itself such as interest charged or capital repayments
  • The operation expense of the proposed business such as some incurred travel costs
  • The expenditure regarding tax of general application such as income tax

If you want to know more about whether / how this tax change can apply to your circumstances or some other latest updates regarding small business Tax Mooroolbark, feel free to Contact our tax and accounting professionals from CLY Tax Accountant Mooroolbark. We are specialised in any issues about Tax and Accounting Mooroolbark, and more than happy to assist your personal / business tax journey all along the way.