1. Record-Keeping Essentials:A Holistic Approach
Maintaining an accurate record of earnings, expenses, and receipts is the cornerstone of effective tax management. Beyond the basics, using dedicated apps (like ITP’s Tax, Logbook and Expense App > https://www.itpqld.com/tax-app) for detailed tracking can provide a granular view of your business-related travel, and aid in precise deduction claims.
2. Understanding Deductible Expenses: Beyond Fuel and Maintenance
While it's common knowledge that fuel and maintenance costs are deductible, a deeper understanding of deductible expenses can enhance your financial optimisation. Consider claiming deductions for business-related smartphone usage, parking fees, and even toll expenses. Additionally, if you utilise a dedicated space at home for administrative tasks, explore the possibilities of home office expense deductions.
3. GST Considerations: Navigating the Complexity
Drivers and Riders are obliged to register for GST, adding a layer of complexity to tax management. Have you delved into the intricacies of GST credits, ensuring you claim them on relevant business purchases. Do you understand your GST obligations and entitlements for maintaining compliance while maximising returns?
4. Superannuation Contributions: Securing Your Financial Future
As a self-employed individual, proactively managing your superannuation contributions can have long-term benefits. Have you explored the advantages of making voluntary contributions to your super fund, ensuring financial security beyond your active years in the gig economy?
5. Depreciation of Vehicle: Optimising Asset Value
The concept of depreciation goes beyond basic wear and tear. Do you understand how to calculate and claim depreciation on your vehicle, motorbike, ebike or bicycle? Whether utilising the Prime Cost Method or the Diminishing Value Method, choosing the right approach can impact your tax position significantly.
6. Insurance Coverage: Safeguarding Your Business
Insurance is not only a necessity for risk management but can also be a deductible expense. Beyond the premiums, document any excess or out-of-pocket expenses incurred during claims, providing a comprehensive view of your insurance-related deductions.
Why Choose ITP Queensland?
At ITP Queensland, we specialise in guiding individuals through the complex tax implications of the gig economy. Our experienced professionals provide personalised assistance tailored to your own unique circumstances, offering peace of mind all year round. If you’d like to know more, we’d love to hear from you. You can easily book an appointment online or call our professionals on 1300 555 773 to make sure your not sharing any more than you need to with the ATO. More ridesharing power to you Queensland!