The end of financial year is just days away, for most of us, this means a small tax return (money back in our pocket). What we should be asking ourselves right now is how do we extend our tax return and get more money back legally.
The Government offers many incentives throughout the year that benefit business and the public. One of these incentives is known as the ‘Retail investor $10,000 tax offset’.
Tax incentives for early-stage investors are designed to connect early-stage innovation companies (ESICs) with investors who have funds and business experience.
For most of us, it means that for every dollar you invest in an ESIC company you get back 20% by way of an offset against your tax, up to $10,000 in each year. This means that you can invest up to $50,000 in a qualifying start-up and get a $10,000 refund in your taxes. If you were to invest $1 more than $50,000, however, you would lose all of the offset. So it pays to know what the rules are.
Now, where to find an ESIC approved company? That’s where COO come in. They are a 2 sided marketplace that firstly assists Founders, Entrepreneurs and Startups get the funding needed to bring their vision to life. On the other side COO also assist Investors by providing all the documentation needed to be able to easily claim money back on your tax.
It would take less than 5 minutes to make $5000 tax-free after giving $5,000 support to an approved startup. (This return assumes that you invest $50,000 in the startup for a year. Finance options allow you to invest $500 to make $2,500 or $7,500 to make $10,000 in 2 months)
So not to cause confusion, you can invest your own money or you can borrow money and invest that. Both options are available through the same place.
- Visit https://cootheservices.com/register and register.
- Click on your favourite startup on the investors tab and click the ‘Invest Now’ button.
- Invest and COO will send you everything you need to claim $10,000 in your tax return.
If you wish to borrow funds to invest, you will need
- Tax File Number
- 2 forms of ID (passport or drivers license, plus Medicare or Credit Card).
- A reasonable estimate of your income, expenditure, assets and liabilities.
We’d recommend talking to COO and discussing these options with your accountant if you have one.
Chet Carter is an IT Professional of 22 years, but has worked with a range of businesses giving him in-depth understanding of many different industries. Chet Carter is a business owner but shares his knowledge and experience through posts like these.