End of Financial Year. What do I need to do?
As we approach the end of the financial year, there are some action items business owners can take to minimise tax and get the best outcome.
Here are some tax planning options to consider:
Tax deductions for superannuation contributions will only be available in the 2019 tax year if the contribution is received by the superannuation fund by 30 June 2019. So, it is important to pay the June liability before 30th June
Donate to deductible charities before 30 June 2019 – check that it’s an endorsed deductible gift recipient
Review all debts before 30 June 2019. Write-off bad debts before year end to get deduction in that year (provision for doubtful debts not deductible)
Identify any obsolete stock and scrap unwanted stock by 30 June
Scrap obsolete plant and equipment prior to 30th June
For eligible small and medium business, new plant and equipment purchased and installed ready for use before 30th June which costs less than $30,000 may be immediately deductible
Prepay deductible expenditure by 30 June 2019, but note prepayment rules may operate to spread deduction over more than one year
Bring forward any repairs that will need to be done in the near future
If you think your motor vehicle usage has changed, start a new 12 week logbook before 30th June. So long as it is started in this financial year you will be able to use it for 2018/19
If you haven’t already used your $25,000 concessional superannuation cap you may consider putting additional amounts into superannuation.
Businesses in building and construction are required to record payments to contractors and report these payments to the Tax Office. From 1 July, 2018, businesses engaged in the courier or cleaning industries were also required to make these reports. From 1 July 2019, the rules will extend to businesses engaged in IT, road (freight) transport, and security industries. The annual report is due to be lodged by 21 July 2019.
Single Touch Payroll will become a reality for most employers from 1st July 2019. If you have not received any information at this point or are concerned please contact us.
We are here to help. If you need any additional tax planning, please contact Patrick Rowan & Associates. tel: 03 5221 7655