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 contribution 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.
$30,000 threshold for depreciable assets
Those in business with a turnover of less than $10 million can completely write- off any asset under $30,000 that is ﬁrst installed and ready to use before 30 June.
Single Touch Payroll due 1st July 2019
The ATO is changing the way that you report payroll details. From 1 July 2019 all employers, no matter their size, will generally be required to comply with the STP (Single Touch Payroll) reporting obligations. Read our Single Touch Payroll summary for more info.
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.
OTHER TAX PLANNING CONSIDERATIONS
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 2018/19 is $25,000 for all individuals
If you have inadvertently made super contributions in excess of the maximum deductible amount (as above), or the maximum non-deductible amount, then please contact us for advice.
Non concessional contributions at $100,000. In some cases, up to $300,000 if the 3 yr bring forward rule applies. Please contact us for advice.