$1,000 ATO tax boost Aussies are missing out on: ‘Click of a button’
An Australian accountant is urging small businesses to claim a $1,000 tax offset from the Australian Taxation Office (ATO). She said she was frequently seeing clients "missing out" on the tax break when it only takes a “click of a button” to do.
The small business income tax offset can reduce the tax you pay by up to $1,000 each year. It is open to small businesses with a turnover of less than $5 million per year.
Fab Tax Accountants founder Miriam Holme told Yahoo Finance the ATO doesn't automatically apply the offset, so eligible small businesses needed to make sure they claimed it themselves.
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“We see it often. If you don’t click the button, it doesn’t apply,” she said.
“You get it every year and it’s just basically clicking it in your tax return and you’ll see it come up on your notice of assessment that you’ve got the small business tax offset.”
The small business income tax offset is open to sole traders or those who get income from partnerships and trusts.
The offset rate is currently 16 per cent of your turnover, with a maximum offset of $1,000.
The ATO calculates your offset based on your income tax return and uses your net small business income earned as a sole trader and your share of net small business income from a partnership or trust.
Do you have a tax story to share? Contact tamika.seeto@yahooinc.com
You can use the small business income tax offset calculator to work out your income amounts and see where to include them in your tax return.
Holme said Aussies who aren’t sure whether they have claimed the tax offset can check their notice of assessment or contact their tax agent.
“The amount of times I’ve seen the $1,000 small business tax offset not being claimed is a little bit annoying,” she said.
“It’s the click of a button, you say yes to claiming the small business tax offset, and you [can] get $1,000 off your tax bill.”
The small business tax offset was introduced in 2015 to help small businesses and lower their tax burden.
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