30/09/2003 - 22:00

ATO simplifies claims

30/09/2003 - 22:00

Bookmark

Save articles for future reference.

THE Australian Taxation Office has announced changes to make it easier for businesses to claim deductions for low-cost items such as office supplies, crockery and small tools.

ATO simplifies claims

THE Australian Taxation Office has announced changes to make it easier for businesses to claim deductions for low-cost items such as office supplies, crockery and small tools.

The changes particularly affect businesses that use large numbers of consumables such as bars, restaurants, retailers, builders, farmers, caterers and cleaners.

The new rules are designed to lessen the cost of defining revenue expenditure, which is immediately deductible, and capital expenditure, which is written-off under the capital allowance rules.

Purchases of $100 or less will generally be accepted as being for revenue items and, as such, deductible in the year of expenditure.

Statistical sampling will also be accepted as an appropriate method to determine the proportion of expenditure that can be attributed to revenue expenditure.

The new rules do not apply to businesses that use the Simplified Tax System as they are already able to claim an immediate deduction for expenditure up to $1000.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options