2019 Hospitality EOFY Tax Deductions For Venues
Understandably, licensed venue operators across Australia are dreading the monumental EOFY stocktake. We get it, and amid the busyness it’s easy to overlook some tax deduction opportunities. With the tax clock ticking, here’s a timely reminder of some handy hospitality EOFY Tax Deductions to keep in mind.
Our top 5 Hospitality EOFY Tax Deductions
Instant Asset Write Off 2019
This year’s Instant Asset Tax write off has grown the value of up to $30,000 for small business with a turnover of under $50 million. Rather than asset costs being depreciated over several years, asset purchases made and installed between 2nd April 2019 and 30th June 2020 can be written off as an immediate 100% tax deduction.
This is the perfect time to upgrade you equipment and systems to better quality and productivity, and support business growth. Are your staff struggling with that rickety old coffee machine? Are your blenders behaving more like tired spinning butter knives? Is your till or accounting system slowing your growth and letting you down? Maybe it’s time to upgrade to more efficient refrigeration or kitchen equipment.
Note dead stock and equipment
During your stocktake, note any old equipment in the storeroom no longer working. With old kitchen equipment, blenders and electronics, you may be able to write off the depreciated value if it no longer works. Also note any out of date liquor that you won’t be able to use. Every little bit adds up.
Claim Max Depreciation for Fit Out & Fittings
Check with your bookkeeper and/or accountant that you are claiming the maximum depreciation for all fitout and fittings. Chairs, tables, shelving, can all be depreciated. If you’re time poor and haven’t kept great records of your fittings and fixtures a professional surveyor can help work out the value of what you have.
Staff and Management Education and Upskilling
Education ventures to improve skill or complete a qualification is tax deductible. Would you like more staff to hold their RSG license? Could your junior wait and bar staff use a refresher bar skills course? Perhaps you have future approved managers who need their RMLV certified, or existing managers whose RMLV is up for renewal. It does wonders for staff morale to support their growth and professional development within the industry, and it’s tax deductible!
Allow plenty of time to process your super payments by June 30. Ideally the payments should leave your account the week prior – so around Friday the 21st June. Super payments processed by june 30 are tax deductible, so why wouldn’t you get the payments out of the way so you can claim them!
Claim More Stress Less
Bookkeeping and getting ready for tax time is hardly anyone’s favourite thing. Our advice is to approach the dreaded June 30 deadline as a good opportunity. This is a time to improve equipment and systems, tidy up old debts or stock, and plan for a bumper year. If you optimise your EOFY Tax Deductions, you’ll be in great stead for a fresh new start to the financial year, with more dollars in the bank, and less stress on your back.