2018 End of Financial Year Opportunities

The end of the financial year is almost here! Now is a great time to look at what else you can do before 30 June to reduce your tax and grow your wealth.

As a business owner, there are a few things that you need to consider and action before 30 June:

  • ensure you have paid your superannuation guarantee obligations before year end to claim a tax deduction in this financial year
  • write off bad debts and remove any obsolete plant and equipment or stock
  • complete a stocktake, if applicable
  • ensure you are ready for single touch payroll, where you have 20 or more employees, as it is compulsory from 1 July 2018
  • finalise payments for any repairs, consumables, office stationery or marketing materials
  • consider a donation to your favourite charity

Key Points

Instant Deduction for Assets Less than $20,000

Are you a small business entity and need to purchase any new equipment before 30 June? A word of caution though. Only purchase items that are necessary as you will only receive a tax break on a portion of your purchase. You will then be left out of pocket, which could affect your cash flow.

Single Touch Payroll

This is compulsory from 1 July 2018 if you have 20 or more employees with the test date being 1 April 2018. You must also use standard business reporting enabled software once single touch payroll is in place.

If you have less than 20 employees, it is not compulsory for you until 1 July 2019. Although, you can elect to opt in now.

PAYG Payment Summaries

These must be issued to your employees by 14 July 2018, including anyone previously employed by you in the 2018 financial year.

You also need to lodge your PAYG Payment Summary Statement with the ATO by 14 August 2018. Penalties will apply for the late lodgement of this statement.

Write-off Bad Debts

If you have tried in vain to collect money from a bad debt and it is likely never to be recovered, now is the time to write it off. Remember, if you have never declared this as income then you cannot claim a deduction for it.

Stocktake

Businesses that buy and sell stock need to do a stocktake before 30 June as any changes in stock level are included when calculating the taxable income of your business.

For more information on ways to minimise your business tax, download our guide – Minimise Your Business Tax – Tax Planning Guide

Call us today if you have any queries. We look forward to helping you realise what’s possible!

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