The time to act for end of financial year is now
It’s that time again, end of financial year… there are sales galore, late nights at the office and a sense of urgency for small businesses balancing the books. We’ve put together some tips on what you can do before 30 June to minimise the tax you pay.
EOFY Tips for Individuals
Superannuation: For the first time salary and wage earners can claim a deduction for a concessional contribution into super without having to be in business for themselves (Concessional caps of $25,000 apply for 2019 FY). Superannuation needs to be received within the fund by 30 June to get a tax deduction in the current year.
Donations: Donations to tax deductible recipients above $2.00 will be claimable if paid by 30 June 2019, make sure to keep your receipts.
EOFY Tips for Business Owners
Depreciable Assets: Make the most of the government’s instant tax write-off for small businesses before June 30. You have the option of buying a piece of equipment for less than $30,000 and claiming an immediate tax deduction. This can be useful for small items of plant and equipment or computers, printers, office equipment etc. This can help reduce your taxable business income provided it’s purchased and installed by 30 June 2019.
Staff Super: Employers must pay staff super by 30 June 2019 to claim the deduction.
Paying employee bonuses: If you’re going to pay your employees a bonus, make sure it’s done by June 30 so you can make the most of the tax deduction.
EOFY Tips for Primary Producers
Income averaging for primary producers: All primary producers have good and bad years, it’s just the way the seasons go, but you can do something about your tax liability by averaging out your income and tax payable over a maximum of five years.
Farm Management Deposits: Drought-proof your business. Primary producers can deposit up to $800,000 in a FMD account, they can have early access to their FMD account during times of drought, and they may be able to offset the interest costs on primary production business debt.
Also, don’t forget about the extra tax benefits for expenditure on water facilities and fencing assets, the outright deduction for Landcare operations and the accelerated write-off for horticultural plants and grapevines.
If you need any help with EOFY advice call us ASAP to get the ball rolling
(03) 5223 1344