8 smart ways to spend your tax refund in Australia as a small business owner

If your business tax refund was sizeable from the previous year, you might need to check if you’ve been overpaying the ATO. This means the government is using your money instead of using theirs. ​

If you did your own business taxes, hold onto the tax refund and use it to hire a professional accountant to do it for you next year. An accountant not only will be able to help you file tax returns, but also assist you with tax planning and tax minimisation. ​

Another benefit of hiring an accountant is that if you register with them before the tax return due date of 31 October, you will be eligible for an extension to file your taxes until 15th May the following year. ​

Read more: How to find the right accountant for your small business​

Investing in new equipment or assets can enhance the efficiency of your business. Therefore, getting a new laptop, buying a new business vehicle, or setting up new tools for business may be worthwhile. Even small upgrades such as getting a new printer, new desks and chairs can help to boost your staff’s productivity and morale.​

Read more: Myth busting - buy or lease assets​

It might be worthwhile thinking about hiring an employee if your business is constantly growing and your revenue repeatedly meets or exceeds your expectations. Labour cost is considered one of the largest expenses when running a business. If your business is booming and you have a decent amount of money from the tax refund, it’s a decision you could move forward with. Here are some important considerations before you hire staff outlined by the ATO.​

However, be aware of the employment-related laws and state laws before making a hiring decision. For instance, understand what the minimum wage you need to pay is, what benefits they’re entitled to, how much you need to contribute to their super and what insurance you need to have. It’s best advised to consult with a legal professional.​

If you’re not ready to commit to hiring a permanent employee, you can hire contractors and freelancers instead so you can focus on the important things to grow your business. However, if you do hire a contractor, you must ensure that they don’t fall into the employee category as this affects your super and tax obligations. The ATO helps explain this further.​

Do you have a website for your business? Even though you’re not running a business online, having a website means you’re more accessible to your prospects and customers digitally. If you have a website already, consider upgrading it. Is your website fast enough? Is your website easy to navigate? Is your website easy to use on a mobile device? Do you want to expand your business and start selling online? Is it easy for new customers to get in contact with you?​

All businesses need good marketing to succeed.. It's a common misconception that marketing is simply promoting your products and services. Really,it involves a wide range of aspects from establishing a brand for business, getting competitive insights in your industry, setting a pricing strategy, knowing your customers and maintaining relationships with them.​

Use the tax refund money for marketing activities such as social media marketing, branding, and search engine optimisation (SEO). If you don’t have the skills needed to implement those marketing strategies, consider hiring a marketing professional from Upwork or Fiverr. ​

Do you want to adopt something in your business but aren't sure how to go about it? Are you thinking of learning something new that you can use to help your business grow? Businesses always change rapidly, and you and your employees need to stay current.​

Take advantage of your Australian tax refund to pay for your own and your employees' education, whether it's a conference in your field or an online course on digital learning platforms such as Coursea, Udemy, and Skillshare. The investment you make in yourself and your employees is ultimately an investment in your business.​

Donating to a non-profit organisation or a cause is a good way to spend your tax refund. One of the biggest benefits is the good feeling of being able to give back to the community and to stand up for causes that you believe in. It shows your community, customers and employees that you are more than just about making money for yourself. Donating is also a marketing strategy as it brings awareness of your business in partnership with the charity you are supporting. If you already have a relationship with a charity, you can donate to them directly. ​

Monetary donations to registered charities can be tax deductible if the Australian Taxation Office has endorsed the organisation as a deductible gift recipient (DGR). Fewer than half of charities in Australia have DGR status. You can check out a charities’ status here. Make sure you keep the records of the donation to be able to claim the tax deduction.​

A small team lunch or bonding activity could be a good way to spend your tax refund. Getting out of the office and taking part in something new and exciting increases your employees’ motivation. It also reminds them that their contributions are appreciated and rewarded. As a result of this motivational boost, they will be more productive and more confident with one another.​

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​​

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.​