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How to make the most of your tax returns and savings opportunities

Karen Tan
08 June 2021 2 minute readShare
New Officeworks report helps SMEs make the most of EOFY tax breaks and savings

We all like a windfall. Now Officeworks is actively helping businesses make the most of their tax returns and savings opportunities.

Just in time for EOFY sales, the office suppliers store has commissioned a new research report to explore exactly what tax breaks are available to small business owners (SBO) this year, and how widely it is understood in the SBO community.

It is timely for businesses to reap the benefits.

The report revealed almost half (49 per cent) of SBOs surveyed are not aware the instant asset write-off has increased to $150,000, with 71 per cent of those surveyed admitting to finding the tax system for small businesses confusing. 

Officeworks chief operating officer Michael Howard said by looking at where to take advantage of business tax breaks, it can be an effective way for small business owners to save money or offset losses.

“However, many small businesses don’t take advantage of them because they are just not aware of what’s available to them,” Mr Howard said.

“When it comes to EOFY, it is best to speak to a taxation professional to take advantage of all the new changes. For instance, small business owners can find out what their company qualifies for, and regularly monitor compliance.

“The key areas that they can look to take advantage of is the instant asset write-off as well as maximising deductible super contributions.”

The tax impact of working from home on employers 

The Officeworks research showcased the impact the last 12 months have had on small businesses, with a third (33 per cent) of those surveyed stating that the working-from-home climate will affect what they claim this EOFY.

A further 14 per cent feel confused over what is a personal (employee) cost and what is a business cost, and 13 per cent intend to write off more assets.

Three out of five small business owners (60 per cent) are concerned about the growth and stability of their business beyond the COVID-19 pandemic, and 40 per cent of SBOs who reported that they don’t usually complete their tax return every year will complete one this year. 

Taking advantage of the instant asset write-off 

The research showed that half (49 per cent) of SBOs are not aware that the incentive has increased to $150,000 this year, yet they (52 per cent) intend to take advantage of it.

Despite this, the research showed SBOs who intend on using the instant asset write-off plan on spending an average of $24,955 before 30 June this year.

Additionally, 27 per cent of SBOs saw an increase in their year-on-year spending for office supplies, furniture and assets.

“If you have financially assisted employees with setting up their dedicated workspace or room at home, you are likely to be able to claim a work-related portion for home office expenses,” Mr Howard said. 

“If you are running your own business from home, you may also be able to claim the work-related share of occupancy expenses.”

Officeworks wants to encourage businesses, and individuals alike, to really make the most of their tax return this year, by ensuring they speak with a good accountant about what they can and cannot claim.

How to make the most of your tax returns and savings opportunities
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Karen Tan

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