There has never been a better time to start-up a Small Business from a deductibility point of view. On 1st July 2015 the ATO changed their policy for claiming start-up expenses, often referred to as “black hole” expenses, for small business.
Black hole expenses can now be fully deducted in the year in which they are incurred, but only for small businesses (less than $2 million turnover *).
Acquisition costs of assets that may be used by the business would not be included and would fall under the capital allowance rules.
Simon White is looking to establish a real estate business that will turnover less than $2million.
Simon engages Tactica Partners to advise him of the most suitable structure to carry on the real estate business and to establish the structure (White Estate Agency Ltd).
Also, Simon is uncertain as to the best location for the proposed business and the new company obtains advice from a consultant
As White Estate Agency is a small business entity and is intending to start-up a new business, the cost of obtaining this advice will be fully deductible in the income year in which it is incurred.
*Other conditions apply. Please contact Tactica Partners to discuss eligibility criteria for small businesses.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
Mark has helped us immensely to understand our financial position, these guys are not just tax agents, they fully understand all aspects of business.
Daniel and his team at Tactica Partners have been taking care of me, my family and my company's accounting needs and I highly recommend him and the team. They've made getting tax done so easy and Daniel is an amazing accountant and extremely thorough and helpful.
…very professional, well prepared and organised. They have given us great business and personal tax advice, offered us good business insights, and more general personal planning advice too.
They continually deliver on all aspects of their service offering. …..we appreciate the substantial assistance they have provided in managing our bookkeeping function and providing proactive tax and accounting advice. We value their ongoing input in helping us strive for continual improvement on our reporting processes and delivery of timely information to our US office.
At last! An accountant who has "not" had a totally successful charisma bypass operation! Sensible and knowledgeable advice. Excellent!
Mark H and Helen have given us wonderful support for our family and business accounting for several years now. When I got my first invoice I grumbled……. not now. We can see the savings and feel the security for ourselves.