Deciding what to buy can be a tough decision?!
It’s almost the end of the tax year but it’s never too late to take advantage of available tax deductions if you’re in a taxable income position.
Get the best results out of your family day care tax return by:
Buying an asset under $20,000
If you’ve been thinking about saving some time and getting better work-life balance now is the chance to buy that Thermomix or 15kg washing machine. Better yet – revamp your family day care environment by spending some money on some new outdoor play equipment or make your outings and excursions easier by investing in a new pram or nappy bag!
Claim an immediate deduction for assets costing $20,000 or less. This is NOT applicable to buildings or construction or renovations. Just remember to split the amount you claim between private and business use!
Make some additional super contributions
Superannuation contributions are tax deductible and carry a double benefit – top up you retirement savings and reduce your tax bill! Just bear in mind that super contributions are subject to a concessional contributions cap of $35,000 for persons under 65 years of age.
Prepay your expenses
By prepaying some of your expenses before the end of the tax year you can claim the tax deduction in this tax year. Prepay items like family day care outings and excursions, family day care events, child care training courses, software subscriptions for accounting, record keeping, child care documentation and storage, insurance on your motor vehicle and home as well as your family day care professional indemnity insurance.
Get some marketing materials for your business
If you’ve been thinking about getting some marketing materials for your business and find yourself in a taxable position think about spending some money on marketing flyers, motor vehicle signage, developing your own website and SEO. By building your brand you will make your family day care business more sustainable in the long term.
Register for GST
Did you know that the fee income parents pay you is GST free? Better yet – you can claim all GST amounts paid on any expenses you have paid to start or run your family day care business.
Get private health insurance
If your or your family income exceeds a certain threshold, you become liable to pay a Medicare Levy Surcharge (MLS) unless you have an appropriate level of private hospital cover. If this situation is applicable – you can avoid the surcharge by taking out private health cover.
The above are thought provoking suggestions only and should not be construed as advice. Please contact us to discuss your specific circumstances.