Hi All
Looking for a suggestion/option.
I have recently stated working as a sole trader on ABN.
I am planning to buy some items to set up home office starting with screen and Mx keys and Mx master.
Is there any sites/places where you can buy for business or you just normally buy it from shop and do a tax benefit ?
Also how does a tax benefit works and how much I can get back e.g. For item worth of $100 and $10 GST so $110 In total.
Can it be offset with next years income, if there is none yet this tax year?
Losses are carried over yes
GST is refunded when the BAS is processed by ATO. Usually straight into your bank account, unless you have other tax debt. No need to wait till next year, and nothing to do with yearly profits/losses or returns.
You will need to be registered for GST to be able to receive a refund of GST credit. This would also mean that you will need to charge GST on your services. Below the GST threshold of $75K the GST registration and payment is voluntary. Above the threshold, it is mandatory. OP will need to work it out.
Looking at the post, I would strongly recommend that the OP seeks some advice regarding their tax obligations.
Your business can buy from any other legitimate business. If you legitimately claim a business use, buy it from any place that will give you a tax invoice (i.e. anything from Colesworth to any place else you can imagine).
Need to be registered for GST to get the tax. Best to talk to your accountant
Also how does a tax benefit works and how much I can get back e.g. For item worth of $100 and $10 GST so $110 In total.
You have to apportion the item between business and private use. The GST for that portion can be claimed. So, if your $110 item is 100% for business use, you can claim the $10 GST back.
The other tax benefit is: the item can be claimed as a business deduction. On the tax return, you can claim $100 as a deduction for your business (assuming 100% business use), or whatever portion is applicable.
BTW Your own business must be registered for GST before you can claim GST. If your turnover is < $75K, you don't need to register for GST.
Is the instant tax write off still available for sole trader? Thought it needed to be purchased by December 2020
At the moment, temporary full expensing applies for assets until 30 June 2022. It is for businesses in general - so sole traders would be included.
If in NSW, dont forget the 1500$ rebate for small businesses
https://www.service.nsw.gov.au/small-business-fees-and-charg…
Have a talk to an accountant and set yourself up properly. The fees are tax deductable.
and you get your GST back, although both tax deduction and GST refund isn't the reason why you go to an accountant.
Thanks Everyone for the feedback , Really Appreciate it
When you submit you BAS, you can get gst back, but I think you need to have income to offset it.
Best you consult and accountant.