Tax time need not be taxing!

With just weeks to go until it’s tax time again, now is the perfect time to plan and review your 2019 tax year so there are no surprises awaiting you. We explain some areas of your business that you should consider in order to get the best tax outcomes possible:

Superannuation

It’s a good idea to pay your employees’ superannuation before 30 June in order to receive a tax deduction in this financial year.  Generally, anyone can contribute a total of $25,000 into superannuation (including any superannuation guarantee paid by your employer already) for the 2019 financial year and claim a tax deduction.

Review your debtors/creditors

Now is the time to conduct a full review of your debtors so that that any uncollectable amounts are written off as bad debts. It’s best to make sure that all creditors have been accounted for at 30 June to maximise tax deductions. 

Take stock of your inventory

For those businesses that have inventory, remember that stock levels should be reviewed at 30 June. There are various methods available to value stock.  For example, if you have obsolete or damaged stock, lower values can be used for these items which may provide valuable tax relief.

Prepay your expenses

Small businesses with a turnover of under $10M can take advantage of prepaying their expenses for the next financial year to ensure they receive a deduction in the current year. 

Capital Expenditure & Instant Asset Write-Off

The Government has recently extended the instant asset write-off of $20,000 until 30 June 2020.  The threshold has also been increased to $30,000 from 2 April 2019.

Capital Gains

If you are planning to sell any investments or capital assets which may result in a capital gain, it is recommended that you review these potential transactions with your accountant prior to signing any contracts as this could impact your tax outcome for the current year.

Perfect time to review your business

With tax being one of the biggest considerations at this time of year, you should also consider reviewing other areas of your business, such as:

  • current structure,
  • accounting and other add-on software programs,
  • business and personal insurances, and
  • estate and succession planning

Get expert help

It’s always advisable to talk to the experts before tax time. The specialists at Halpin Partners are highly skilled at assisting you with your Tax Planning needs, and will review the above areas with you to ensure you have the best strategy for yourself and your business as you wrap up another financial year.