“If you fail to plan, you are planning to fail”
Another year, another June 30. A big day for business owners and accountants. To keep your end of financial year as smooth as possible, here are a few tips to ensure your 30 June runs effortlessly.
Buy things and get a Tax Deduction!
If you run a business you may want to consider purchasing any depreciable assets prior to 30 June. The Temporary Full Expensing program sees over 99% of businesses in Australia eligible to deduct 100% of the cost of newly acquired depreciable assets.
Individuals on salaries can also bring forward deductions by purchasing any stationery or work-related equipment, or by incurring other work-related expenses before 30 June.
If you are feeling charitable, now is a good time to donate. Donations over $2 to Deductible Gift Recipients (DGR’s) are tax deductible.
Taking stock of your business
It is good practice to ensure a thorough stocktake is completed at 30 June to ensure the stock on hand levels of your business are accurately recorded. If you require assistance with completing a stocktake, please contact our office.
A review of your debtors should also be completed with any debts considered ‘bad’ being written-off prior to 30 June to claim a tax deduction.
Be sure to pay your employees’ superannuation prior to 30 June to claim a tax deduction in the 2021 financial year.
Reminder – the superannuation guarantee increases to 10% from 1 July 2021.
Superannuation can work for you
The concessional contributions cap for the year ended 30 June 2021 is $25,000. This allows people to ‘top-up’ their superannuation prior to 30 June to claim a tax deduction this year. We encourage you to speak with your financial advisor prior to making any contributions to superannuation.
The temporary reduction in minimum pension requirements has been extended until 30 June 2022. Please speak with your financial advisor to understand how this impacts your superannuation.
When you can’t get away from the office…
With COVID-19 trapping many people indoors, working from home became the norm for a large percentage of the population.
The ‘Shortcut method’ for claiming working from home costs allows employees working at home to claim a set $0.80 per hour. If this sounds like you, it is important to maintain a register of the hours worked from home.
We strongly encourage anyone who has been or continues to work from home to maintain a register of all expenses incurred as the ‘Shortcut method’ may not necessarily result in the best tax outcome.
The Resolution Revolution!
Trust distribution resolutions are required to be completed prior to 30 June to appoint the income of the trust to the respective beneficiaries. We can assist you in planning the most tax effective distribution strategy – please contact our office to discuss.
Where dividends are required to be declared by private companies (often to assist in making Division 7A repayments), the dividends resolutions and dividend statements should be prepared prior to 30 June.
Who to get in touch with