Cruz and Co

We know tax. Let us look after yours.

  • Home
  • About
    • Meet the Team
    • Our Clients
    • Testimonials
  • Services
    • Tax Consultant and Compliance Services
    • Small Business and Sole Trader Accountant
    • Outsourced Accounting Solutions
    • Business Structure
    • Outsourced CFO
    • Working Visa Refunds
  • Resources
    • Tax Refund Process
    • Client Assistant Schedule forms
    • Downloadables
    • Helpful Links
    • Rental Property Cashflow calculator
    • SMSF Tax Refund Process
  • Contact Us
  • Blog

Connect with us

  • Facebook
  • LinkedIn

7 Ways To Reduce Your Tax Bill

business-blogIt is never too early to focus on your tax planning in order to minimise tax, reduce risk and be prepared financially.

Effective tax planning is something that should be considered year round and making it a priority can result in you paying less tax liability. Preparing and updating a forecast of income and outgoings can also help you and your business identify times when money may be short and plan accordingly.

Business

1. Claim for training courses
Employers can claim a tax deduction for education expenses that have a satisfactory connection to an employee’s current employment, maintain or improve the skills or knowledge required for the employee’s current role, or result in an increase in the employee’s income.

2. Review your business structure
There are four commonly used business structures in Australia; sole trader, partnership, company and trust. Business owners need to understand the responsibilities of each structure, since each structure affects the tax they’re liable to pay, asset protection and ongoing costs. Reviewing your current business structure will establish whether it is still appropriate for your business’s current situation.

3. Write off bad debts
Businesses can write off bad debts to claim a tax deduction and receive a GST credit on their next BAS (if they are registered for GST on an accruals basis) provided that:

• The business has tried to recover the debt and has exhausted all efforts for it to be recovered with no reasonable expectation of payment.
• The bad debt is formally written off in the accounting records prior to the end of the financial year.
• The debt owed is included in your assessable income in the current financial year or earlier financial year.

4. Claim deductions for depreciating assets
Small businesses can claim an immediate write off of up to $20,000 for eligible assets they start to use, or have installed ready to use, and paid for, from 12 May 2015 until 30 June 2017.

The $20,000 limit can be applied to as many items as they wish. Assets that cost $20,000 or more are added to the entity’s small business pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter.

5. Apply the 15 year exemption
Small business owners aged 55 or older who retire or become permanently incapacitated, and have owned a business asset for at least 15 years, are exempt from paying CGT when they dispose of the asset.

6. Use the 50% active asset reduction
Small business owners can reduce the capital gain on an active asset by 50%. An active asset is a tangible or intangible asset that is used or held ready for use in the course of carrying on a business.

7. Consider applying the small business rollover.
Small business owners who make a capital gain from selling an asset can defer the CGT on the capital gain, as long as a replacement asset is acquired within two years.

 

Source via Lee & Lee Accountants

Testimonials

  • Vanita Aloda

    Restaurant Owner

    Ritchie Cruz is my Accountant. We have a solid 10 year relationship.

    Ritchie as always provide me with honest and efficient service.

    Is a great communicator, always replies efficiently to…

    Read full testimonial
  • Regina Wang

    Business Tax – Beauty Salon 

    Ritchie has been managing my tax matters as a sole trader for 2 years+. Always very responsive to my questions and make effort to reply…

    Read full testimonial
  • Jonathan Yeoman

    Director, Technical Design Company

    This is a new business startup and Cruz&Co. have provided great help, guidance and reassurance from the beginning.

    Ritchie has provided us with excellent service and…

    Read full testimonial
  • Napoleon Guines

    Director, Travel Company Operations

    Ritchie Cruz and Co are accommodating and have excellent service.

    Cruz & Co have impressed me the most is due to their efficient service.  They are…

    Read full testimonial
  • Daniel Robey

    I have and continue to recommend Cruz and Co to many businesses and individuals who are looking for a business advisor and accountant that goes over and above…

    Read full testimonial
  • Jae Kwon Yoo

    Business Tax – Electrical Contractors

    Ritchie is awesome. He is very professional and responsive and he is always there to help you. He even replies during weekend. He needs some…

    Read full testimonial
  • Zac Fryer

    Director, Import and Distribution Company

    Ritchie Cruz provides and high level of accounting expertise and goes above and beyond in answering any queries we have.

    Read full testimonial
  • Jonathan Fambart

    Business Tax – Travel Industry

    Cruz & Co was introduced to me this year and it was the best decision for my sole trader and personal taxation affairs. Ritchie the…

    Read full testimonial
  • Dr Krish Perananthan

    Cosmetic and Implant Dentistry

    Ritchie was recommended to me by my father and I have also continued to recommend him to my friends. He is reliable, efficient and has a…

    Read full testimonial
  • Kellie Pincham

    Director
    Automotive Parts Retailing business

    Cruz & Co offer a great professional and friendly service. Ritchie gave me confidence running the business knowing that he was readily available for…

    Read full testimonial

© 2025 Cruz & Co.

  • Home
  • About
    • Meet the Team
    • Our Clients
    • Testimonials
  • Services
    • Tax Consultant and Compliance Services
    • Small Business and Sole Trader Accountant
    • Outsourced Accounting Solutions
    • Business Structure
    • Outsourced CFO
    • Working Visa Refunds
  • Resources
    • Tax Refund Process
    • Client Assistant Schedule forms
    • Downloadables
    • Helpful Links
    • Rental Property Cashflow calculator
    • SMSF Tax Refund Process
  • Contact Us
  • Blog