tax write offs for small business owners 2015

For example, say you have to pay $4,000 in taxes, but are also eligible for $500 in tax offsets.

While both have the same purpose of reducing a small business owner's tax burden, it's essential to understand how they differ so you can benefit from both.Īccording to the Australian Taxation Office (ATO), a tax offset can help reduce your taxes payable on your taxable income in the given financial year. If you are a small business owner who has done some research on how to reduce your taxes, we're sure that you've heard the terms ‘tax offsets’ and 'tax deductions' quite often. In this blog, we share details on how the small business tax offset works along with other useful links to help you understand how you could benefit from it. Over the years, the Australian Government has taken various measures to support small businesses, one being the small business tax offset. It's also worth noting that, amidst the COVID-19 crisis, many small businesses still managed to thrive despite having less financial power and resources compared to large organisations.

According to the ASBFEO Small Business Counts report from December 2020, small businesses account for over 97% of all Australian businesses and employ over 4.7 million people, making them Australia’s largest employer. In addition to empowering local communities and contributing towards GDP, they have created numerous job opportunities in recent decades. Small businesses have undoubtedly played a significant role in developing the Australian economy.

Tax write offs for small business owners 2015