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Prepare yourself for tax time
As it does every year, End of Financial year is sneaking up in the coming months, so we thought what better time to share with you some things to think about at this time regarding your insurances. This includes how you may be able to make your business jump off the page and ensure you receive the best deal possible.
Early preparation (Start early):
Begin to strategise and collate your receipts. You can easily reduce your taxable income by claiming back tax deductions that you incurred through running your business. To do this, you must be able to show proof, so being diligent and collating your receipts is a must.
Receipts that can help to reduce your taxable income include credit card statements, records of employee wages and superannuation, invoices, and end of year tax records.
Reassess your insurance covers:
A lot of the time, insurances are due for renewal around tax time, so what better time to sit and make sure you’re only paying for what you need and nothing you don’t. Rather than just renewing your insurance, make sure you are covered for the right things. This can include if you have hired new staff, new equipment, or removed machinery you no longer need cover for.
Make sure you speak to your local Adroit Risk Adviser to go over your renewal or to take out a new policy before the End of Financial year.
Check if your insurance policy is tax deductible:
There are several insurance policies that you may be able to claim back on tax.
- Business Insurance – You may be able to claim deductions for most of your operating expenses in the same year you incur them.
- Income Protection Insurance – According to the ATO, most of the time you can claim a tax deduction on the premiums you pay to protect your income. You can’t claim a deduction if it is taken out through the same policy as your superannuation.
- Car Insurance – You can generally claim a deduction if the vehicle that is insured is used to perform a job or help run the business (make an income). Using a logbook, you can claim the work-related percentage of your car insurance as a deduction.
Travis Noffke – Senior Risk Adviser – Adroit Insurance and Risk