Tax Planning Tips & End of Year Review

Can you believe 30th June 2019 is almost here?

We suggest for businesses to be ready for the end of financial year, below are a few standard business items for you to look at -:

  • For businesses for eligible plant purchased during 2018/19 you will be eligible to claim a 100% immediate write-off for businesses less than $10 million turnover
    • Less than $20,000 for plant purchased between 07.18 to 28.01.19
    • Less than $25,000 for plant purchased between 29.01.19 to 02.04.19
    • Less than $30,000 for plant purchased between 02.04.19 at 7.30pm until 30.06.19 $30,000
  • For Businesses with turnover from $10 million to $50 millon they can claim less than $30,000 for plant purchased between 02.04.19 at 7.30pm until 30.06.19 $30,000 (proposed but not yet legislated)
  • If you are wanting to reduce your annual profit
    • Pay any superannuation liabilities before June 30 so it reduces the 2019 tax position. The contributions must be cleared funds by 30.06.2019 in the recipients Superfund to claim a deduction for 2019. With super clearing houses and electronic transfers we would suggest making these contributions no later than 21st June to ensure they clear;
    • Review your depreciation schedule for obsolete items;
    • Perform a full stock-take and write off obsolete stock;
    • In limited circumstances prepayments of interest, subscriptions, rent or insurances can be deductible;
    • Consider paying bonuses to staff;
    • Write off any bad debts;
  • If you have to purchase consumables consider purchasing them prior to 30th June, this gets your deduction in this year; (if on an accrual basis you just need to purchase the consumables and have an invoice).
  • The maximum concessional superannuation contribution for 2019 is $25,000 per taxpayer.

Single Touch Payroll (STP)  is Here, what is it? What to do by 30th June 2019.

Single Touch Payroll (STP) is a new legal requirement to report salaries and wages, PAYG withholding and superannuation via STP-enabled software to the Australian Taxation Office (ATO) each time you pay your employees.

With the correct software all data is sent as processed in real time.

By implementing this system the ATO will have wider reaching ability to data match (Child Support & Centrelink). From 1st July 2018 STP became compulsory for employers with > 20 employees. For employers with 19 employees or less,  the start date for STP varies but you should ensure that you have reviewed your situation prior to 1st July 2019 to ensure that you comply.

There are some benefits of the new system:

  • You’re no longer required to submit a payment summary annual report;
  • You’re no longer required to prepare payment summaries, however you will be required to provide a finalisation declaration by 14th of July each year;

Most of the widely used accounting programs such as Xero, MYOB etc easily handle the transition to STP, although there may be some increased costs depending on your program. The ATO is currently working with different software providers to develop free and low cost options to report under STP.

If you haven’t contacted us yet for your tax planning consultation, call us to book your appointment to ensure you maximise your financial position before 30th June.  If you have any questions please do not hesitate to contact one of our qualified accountants on 07 54379900.

Related Articles

The landscape for non-profit organizations in Australia, particularly those that are not registered as charities, is undergoing a significant transformation. This change revolves around how these entities will access and demonstrate their eligibility for income tax exemptions moving forward. This blog post delves into the critical aspects of the new requirements set forth by the Australian…

Read more

Are you a female entrepreneur with an innovative business idea? Do you need funding to take your startup to the next level? If so, the Female Founders Co-Investment Fund could be just the opportunity you’re looking for. The Female Founders Co-Investment Fund This pilot fund is a unique business grant specifically designed to support eligible female-founded…

Read more