Home' INSTYLE Magazine : INSTYLE SPT-OCT 2017 Contents Making the most of Federal Government tax
breaks -- and saving thousands in the process,
Parramatta hairdresser Sarkis Akle, from hair
by Phd, wants to ensure other hairdressers
are taking advantage of some of the support
measures that the government is providing.
Hair by Phd was one of the first unisex hair salons in
Parramatta, established by Sarkis' father in 1968. In 1995, Sarkis
took over the business with his sister, and after successfully
opening a second salon in Carlingford, he has expanded into a
third salon in Camden.
Sarkis, who currently employs 21 team members, said common
financial struggles across the industry included managing wages,
staff management and general cash flow. "You have to make sure
your team is paid and happy and bringing in enough money from
clients to pay the bills," he said.
e 47-year-old said it's important that salon owners kept
up to date with money-saving options available to them. "As
hairdressers, we tend to get so caught up in doing what we do
best, which is hairdressing. We tend to leave the business side
alone and rely on accountants," Sarkis said.
As an experienced salon owner, he said he took advantage of the
government's immediate tax cuts for small businesses, including a
$20,000 tax deduction on equipment, last year, and he was alerted
to this assistance by keeping his eye on the media.
"I like to keep my eye on politics and as such, I found out about
the $20,000 tax deduction," he said. "It helped me to be able to
complete some renovations on my salon and also to buy some new
In addition to the $20,000 tax break, Sarkis has taken advantage
of the government's Supporting Apprenticeships / Incentives
programme, which he says has been hugely helpful to the
business. He urges all small business owners to jump online and
check out the Federal Government's website.
" e (Federal) government has a very useful website for small
business owners where you can find out about the assistance
they can give you," he said. "It's very easy and informative -- you
answer a few questions online and take it from there."
rough a savvy approach to tax and finance,
you could be saving thousands on your salon
spend, discovers Michelle Ruzzene.
TA X Hacks
To find out if your small business is eligible for government
assistance go to www.business.gov.au/smallbusiness
TOP TIPS FROM THE AUSTRALIAN GOVERNMENT FOR ELIGIBLE
SMALL BUSINESS OWNERS:
• Tax cuts: The Australia Government has reduced the company tax rate
from 30 per cent to 28.5 per cent for companies that are small business
entities with an aggregated turnover of less than $2 million. Businesses
with an annual turnover of up $10 million will now have until June 30,
2018, to immediately deduct eligible assets up to the value of $20,000.
• Simpler GST reporting means less red tape: The Australian Government
is reducing the amount of GST information required for BAS to simplify
GST bookkeeping and reporting requirements. This means small
business owners can complete their BAS requirements with less hassle.
• Faster depreciation helps SMBs get the equipment they need: New laws
have passed that allow small businesses to claim an immediate deduction
for assets they start to use -- or have installed ready for use -- provided each
depreciable asset costs less than $20,000. This will temporarily replace the
previous instant asset write-off threshold of $1,000.
• Increasing access to company losses: Simpler tax rules will soon make it
easier for companies to claim losses when they seek new opportunities
to innovate and grow.
• New Enterprise Incentive Scheme: The Australian Government
is supporting job seekers to pursue entrepreneurship and self-
employment as an alternative pathway to employment. The recently-
expanded New Enterprise Incentive Scheme (NEIS) supports up to 8,600
job-seekers start their own business each year.
• Cutting the red tape: Reducing red tape and regulations will enhance
competition, decrease business costs and give business owners more
time to run and grow their business. The Australian Government set
a target of reducing red tape by $1 billion per year, but has already
removed $5.8 billion between 2013 and 2016.
• National Business Simplification Initiative: To make it easier to set up a
small business and deal with government, governments have agreed to
work together to make it simpler to do business in Australia. The National
Business Simplification Initiative, will help existing businesses grow and
remove barriers to new business creation, which will help innovation
flourish and create more jobs.
• A Small Business Helpline: The Fair Work Ombudsman's helpline is there
to provide small business people with a priority service to help with
quick, easy and targeted employment advice. Since its launch in
December 2013, the Small Business Helpline has answered more than
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