Tax Tips 2023 FDCA

1. WHO ARE WE?
• FDC Tax are Registered Tax Agents and Accountants who specialise in Family Day Care
• 20 years Family Day Care Tax and Accounting experience
• Services offered Australia wide remotely and securely over the internet since 2007

2. 2023 FDCA TAX TIPS WEBINAR
1
Diary and Record Keeping Requirements
2
Business Related Expenses and
Deductions
3
20% Technology Investment Bonus
Changes to claiming home
electricity and running costs
4
5 Additional Questions and Find Out More Family Day Care is unique when it comes to tax and accounting

3. - Advertising
- Bank Fees and Charges
- Books for Children
- Cleaning
- Conferences and Seminars
- Consumables
- Courses / Training Self Education
- Decline in Value (Depreciation)
- Electricity, Gas, Heating
- Excess Water
- Food and Drink
- Garden and Surrounds
- General Equipment – Costs, high chairs, bouncinettes,
mattresses, pushers, strollers etc.
- Health & Safety Equipment
- Hire of Equipment
- Insurances
- Interest on loans for Family Day Care
- Journals and Magazine Subscriptions
- Linen – hand towels, bibs, pillow cases, water proofs,
table protectors, sheets, blankets, towels, washers, placemats etc.
- Memberships – Family Day Care Australia, IFDCO, State Educator
Associations, Unions and Other Professional Associations
- Motor Vehicle Expenses
- Mortgage Interest
- Playground Equipment
- Professional Services – Accounting and Legal Fees
- Protective Clothing
- Rates
- Rent
- Reference Books eg Tax Guide
- Repairs, Replacements and Maintenance
- Safety Equipment – safety catches, door stops,
doorway,
barriers etc
- Sand and Sand Pits
- Scheme Levies and Charges
- Stationery and Postage
- Storage of Family Day Care Equipment
- Superannuation Contributions
- Telephone, Internet and Mobile fax, email
- Toys
- Travelling and Parking – Taxis, buses, trams and trains
WHAT TYPE OF EXPENSES CAN I CLAIM AS A TAX
DEDUCTION?

4. Special Deductions
ALL THESE EXPENSES CAN BE
DIVIDED INTO 3 CATEGORIES
Problem Expenses
Exclusive Expenses
1 2 3
These are expenses which
are generally fully deductible
as they relate exclusively to
your Family Day Care
Business.
Where Apportionment may
be necessary as there is a
combined private/family
and business use.
Unique ATO claim guidelines
and laws – EG Motor
Vehicles, Superannuation,
Depreciation, Technology
Boost

5. HOME ELECTRICITY AND RUNNING
COSTS
Pre 1 March 2020
• 52 Cents/Hour – Includes Electricity, Gas, Cleaning Costs, and Home Office Furniture; and/or
• Actual Costs – Business Percentage Only per diary or calculation
1 March 2020 to 30 June 2022 – Covid 19
• 52 Cents/Hour and/or Actual Costs per above; OR
• 80 Cents/Hour - Includes Electricity, Gas, Cleaning Costs, and Home Office Furniture, Home Phone & Internet, Mobile
Phone, computer consumables and computer equipment
Post 1 July 2022
• 67 Cents/Hour – Includes Electricity, Gas, Cleaning Costs, and Home Office Furniture, Home Phone & Internet, Mobile
Phone, computer consumables; OR
• Actual Costs

6. RECORD KEEPING FOR HOME RUNNING
COSTS
Rate per Hour
Pre 1 July 2022 to 28 February 2023
• Record or Diary of the number of hours worked from home over a representative period (eg 4 weeks)
From 1 March 2023 to 30 June 2023
• Record of the total number of actual hours (eg a diary) on each occasion you worked from home for the period
From 1 July 2023
• Record of the total number of actual hours (eg a diary) on each occasion you worked from home for the entire year
Family Day Care – Hours Worked Report and/or Timesheets

7. RECORD KEEPING FOR HOME RUNNING
COSTS
Actual Costs – Diary and Invoices (if not using rate per hour)
All Receipts and Invoices
• Energy Costs (Electricity & Gas)
• Home Phone, Internet and Mobile Phone
• Home Office Furniture & Equipment including computers
Diaries
Electricity and Equipment
• A diary (or similar record) of the total number of hours worked over a 4 week period where home hours are regular
• A diary (or similar record) of the total number of hours worked for the entire income year where hours are not regular
• Equipment, Internet, Streaming and similar items and Services

8. RECORD KEEPING FOR HOME RUNNING
COSTS
Actual Costs – Diary and Invoices
Equipment, Internet, Streaming and similar items and Services
• All Receipts and Invoices
• A diary (or similar record) of the total number of hours or usage over a 4 week period where home hours or usage is
regular
• A diary (or similar record) of the total number of hours worked for the entire income year where hours or usage are not
regular
What to Record – FDC, Private and Shared
• Equipment and appliances – Hours / Days used or Cycles for FDC, Private and Shared
• Internet and Streaming Services – Data or Hours Used for FDC, Private and Shared
• Mobile Phone – Calls, Messages and Hours or minutes used for FDC, Private and Shared

9. SMALL BUSINESS TECHNOLOGY INVESTMENT
BOOST
• 20% Bonus deduction for digital operations or digitising your business’ operations
• Applies to eligible expenditure incurred from 7:30pm (ACT time) 29 March 2022 to 30 June 2023
• Limit of $20,000 from 29 March 2022 to 30 June 2022, and $20,000 in the 2023 income year
• Eligible expenditure up to 30 June 2022 and 30 June 2023 are claimed in 2023 income tax
return.
• Equipment must be purchased, installed and ready for use BEFORE 1 July 2023

10. SMALL BUSINESS TECHNOLOGY INVESTMENT
BOOST
Eligible Expenditure
1. Digital enabling items – Including computer and telecommunications hardware and
equipment, software, internet costs, systems and services that form and facilitate the use of
computer networks.
2. Digital media and marketing costs – Including audio-visual content that can be created,
accessed, stored or viewed on digital devices, including web page design.
3. E-commerce – Including goods and services supporting digitally ordered or platform-enabled
online transactions, portable payment devices, digital inventory management, subscriptions to
cloud-based services, and advice on digital operations or digitising operations (e.g., advice
about digital tools to support business continuity and growth).
4. Cyber security – Including cyber security systems, backup management & monitoring services.

11. Taxable Income $40,000
Taxable Income Before
$40,000.00
Less: $20,000 W-Off
$20,000.00
Taxable Income
$20,000.00
Tax on $20,000 = $0.00
Tax Saving $4,142
SPENDING MONEY TO SAVE TAX
Tax on $40,000* = $4,142
Taxable Income $20,000
Taxable Income Before $20,000.00
Less: $20,000 W-Off $20,000.00
Taxable Income $0
Tax on $0 = $0.00
Tax Saving $0.00
Tax on $20,000* = $0
* Assuming entitlement to Non-Refundable Tax Offsets of greater than $342.00
* Excluding Medicare

12. Prepay or delay paying expenses (either
prior to 30 June 2023 or after 1 July
2023) depending upon which year you
expect to earn the highest income
including:
END OF YEAR CONSIDERATIONS - PREPAY OR DELAY
• Insurances
• Car registration and/or fuel
• Rent - if exclusive area
• Resources and equipment

13. Tailored and individual advice for your personal circumstances:
• Annual Tax Checklist
• What records do I need to keep?
• What is the best record keeping system for me?
• How much of my home can I claim?
• Should I register for GST?
• How much should I be saving for tax and PAYG?
• What deductions can I claim for my car and other items?
• Family and Other Business Returns and advice
HOW CAN WE HELP YOU FURTHER?
Get in Touch
Book a consultation, or request a call back at www.fdctax.com.au
Call us directly on 1300 FDC TAX (332 829) or email info@fdctax.com.au