With the end of the financial year fast approaching, it is the ideal time to review your 2022 tax year so there are no surprises awaiting you. Below are some areas of your business that you should consider in order to get the best tax outcomes possible:
Review your debtors/creditors
It is a good time to conduct a full review of your debtors so that any amounts that are uncollectable can be written off as bad debts. It is also beneficial to ensure that all creditors have been accounted for by 30 June to maximise tax deductions.
Take stock of your inventory
For businesses that have inventory, always remember to review your stock levels on 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 $50M 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 Temporary Full Expensing measures for eligible entities until 30 June 2023. This means that a tax deduction can be claimed for the full purchase cost of eligible assets.
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, if eligible, you can contribute a total of $27,500 into a superannuation (including any superannuation guarantee paid by your employer already) for the 2022 financial year and claim a tax deduction.
Capital Gains
If you are planning to sell any investments or capital assets that 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
If you would like to discuss any Tax Planning matters, please contact the Halpin Partners team at (07) 4052 0800.
