Now is the time to start thinking about whether you could be paying less tax this financial year.

Your accountant should now be working on setting you up for the upcoming financial year-end, then once 30 June rolls around you’ll be satisfied that you’ve done all you can to know where you stand, and be in the best possible position for tax time.

See this Link for our letter that we recently sent to our Business Clients about our interim reviews.

There are always a lot of changes, but here are just some you need to consider this financial year.

Individuals

You are again able to make personal tax-deductible contributions into super even if you are employed. Other restrictions and caps can apply, but it is now a whole lot easier.

Will you be eligible for the new Low and Middle Income Tax Offset?

Small Business

The last couple of years have seen many business clients save a lot of tax by writing off new assets costing less than the $20,000 threshold, as well as older assets in a pool that has fallen under the threshold. The downside to this can be fewer deductions this financial year, and a big shock if you have sold an asset. How will that affect you?

The one year extension to the Small Business $20,000 instant asset write off was due to cease on 30 June 2019, however recent budget measures have passed to increase the threshold to $30,000 and make the measure available to business with a turnover of up to $50m. But also be aware that a $25,000 threshold applied between 29 January and 2 April 2019. 

But you can’t decide to use this write-off at the last minute, as you need the asset to be installed and ready for use to get the deduction.  An invoice on 30 June is not enough.  Of course buying something just to save tax isn’t the right thing to do.  We can help you make the right decision for your business.

There are still drought tax elections that farmers can consider using if they’ve been forced to make disposals.

We can also help make sure you don’t get caught out by the non-commercial loss rules and also ensure all necessary obligations have been met prior to the end of the financial year.

You will need time to put any suggestions into practice, so don’t delay!

Other Issues to Consider Before 30 June

Don’t forget that all employers need to be getting ready to electronically report direct to the ATO at each and every pay run from 1 July (Single Touch Payroll).

Your bookkeeping processes might also benefit from a refresh.  The latest software from Quickbooks Online, MYOB, and Xero (and many more) can download transactions direct from your bank into your accounting package, and even code some of it for you.  It is available on your smartphone as well as your desktop, and also accessible in real-time by your accountant.  Now is the time to get set-up and ready to go for 1 July.

These are just some of the issues to consider before 30 June, so talk to Burnett Business Centre today.