Tax year-end checklist

Tax year-end checklist


Business Income and Expenses…

  • Consider strategies to defer income until after 30 June or bring expenses forward into June, especially if you expect lower income for next year.
  • Ensure that your tax deductions are allowable:
      • Bad debts must be written off before 30 June
      • Super contributions must be paid before 30 June and must be within the contributions caps
      • Small businesses can claim expenses prepaid up to 12 months in advance
      • Wages paid to your spouse or family members must be reasonable for the work performed
  • Small businesses planning major purchases or replacements of capital equipment should contact us for advice. Careful timing of those transactions can result in substantial tax savings.
  • Review valuations of inventory in the lead up to 30 June.

$20,000 threshold for depreciable assets…

  • Those in business with a turnover of less than $10 million can completely write- off any asset under $20,000 that is first installed and ready to use before 30 June



Personal Income, Deductions and Tax Offsets…

  • Subject to cash flow requirements, set term deposits to mature after 1 July, rather than before 30 June.
  • Consider realising capital losses if you have already realised capital gains on other assets during the year. The key date for tax is contract date, not settlement date.
  • If you expect lower income in the next year due to retirement or any other reason, consider deferring income until after 30 June, when you will be in a lower tax bracket.
  • If you are a primary producer and you expect a permanent reduction in income, consider withdrawing from the income averaging system.
  • Arrange for deductible donations to be made before 30 June
  • If you plan to purchase income-producing assets, consider acquiring assets that will generate positive cash flow in the name of the lower income earner. Conversely, consider acquiring negatively geared assets in the name of the higher income earner. But please consult with us before any significant purchase to ensure that capital gains tax has been considered.



  • Trustees of trusts should ensure that all necessary documentation is completed before 30 June to avoid a substantial tax liability.
  • Family discretionary trusts may need to make a family trust election if the trust has un-recouped losses, or has beneficiaries whose total franking credits for the year may exceed $5,000.
  • Be sceptical of year-end tax shelter schemes. You should not enter a scheme without advice regarding both its tax consequences and commercial viability.
  • Contact us for advice if you have moved to or from Australia for an extended period. You may need to review your residency status for tax purposes.



  • The concessional (deductible) contributions cap for 2016/17 is $35,000 for individuals aged 49 or over on 30 June 2016 and $30,000 for all other individuals. These limits are all reducing to $25,000 from 1 July 2017.
  • If you have inadvertently made super contributions in excess of the maximum deductible amount (as above), or the maximum non-deductible amount ($180,000 for the 2017 year) then please contact us for advice.

Related Links:

Hales Douglass blog:  Superannuation year-end planning tips

Please email David Howells or call him on (02) 4455 5333 for further information.

About the Author:

David is passionate about helping clients improve their businesses and achieve their goals. He is an expert Auditor who also specializes in Business Advisory, Strategic Tax Planning, and compliance of Not-For-Profits & Self-Managed Super Funds.Contact David via email or call 02 4455 5333.