Maximising Deductions for Non-SBE Taxpayers: Accrued Expenditure

Date posted: Sunday, June 23, 2013

Our last topic for non-SBE (non-small business entity) taxpayers is accrued expenditure.

So what is accrued expenditure?
Accrued expenditure is expenses incurred during the current financial year. Non-SBE taxpayers (and some SBE taxpayers) are entitled to a deduction of expenses incurred during the current financial year, even if they have not yet been paid.

So what are some expenses that may be accrued?

• Salary/wages and bonuses – the accrued expenses for the days that employees have worked but not been paid as of June 30
• Interest – any accrued interest outstanding on a business loan that has not been paid as of June 30
• Commercial bills – the discount applicable to the period up to June 30, where the term of the bill extends past June 30
• Fringe benefits tax – if any FBT instalments is due in the June quarter, but is not payable until July, it can be accrued and claimed as a tax deduction in the 2013 income year
• Director’s fees – a non-SBE taxpayer can claim a tax deduction where the company has a definitive commitment to pay a director’s fee during the current financial year.

To find out exactly what your business can claim  contact Pakenham Taxation + Accounting on (03) 5940 1836 and make a booking with one of our experts today.

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