If you’re a private company owner, under tax law you must treat your private expenses separately from your company expenses.

You may incur penalties and have to pay more tax if your personal and company money are not separated appropriately.

The usage of private company assets may also be taxed if private company owners use the assets of the company for free or at less than market value. The following forms of usage will not be taxed:

  • minor usage – where the value of the usage is under $300 otherwise deductible usage – if you had paid a cost to use the asset, you could claim a deduction.
  • the use of certain homes and dwellings – certain conditions apply.

For more information on usage of assets please contact the team at South East Access