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TAX PLANNING STRATEGIES

The end of the tax year will soon be upon us with 30 June just around the corner. Now’s a good time to take a look at both your expected taxable income (your business’s assessable income, minus any allowable deductions) for the current financial year 2021-22; and your projected/expected taxable income for 2022-23, as they will help guide your tax planning strategy.

Some items to look at now to reduce your income tax for 2021 – 2022

BEFORE 30th JUNE 2022

• Pay Superannuation Guarantee (SG) to obtain a tax deduction in this financial year (even though it isn’t due until 28 July 2022)
• Make additional superannuation contributions up to the contributions cap
• Review Accounts Receivable (Debtors) ledger and write off any bad debts
• Review stock on hand and write off slow moving or obsolete stock
• Review Work In Progress (WIP)
• Bring forward tax deductible purchases such as accounting software, repairs, donations and office expenses/consumables
• Review Asset register and scrap and obsolete equipment
• Pay director’s fees or dividends
• Pay staff bonuses
• Adjust owner’s wages
• Defer receiving income
• Defer invoicing
• Prepay expenses for up to 12 months e.g. rent, insurance, interest, subscriptions, business travel
• Purchase business assets and have them ready and installed for use by June 30, 2023. Available to all Australian businesses with up to $5 billion in annual turnover with no cap on the value of the new assets that can be claimed.

DON’T FORGET TO PAY YOUR SUPER, TAKE YOUR PENSION, CLAIM ANY CENTRELINK ENTITLEMENTS, LODGE YOUR 2021 TAX RETURN & DEFER BUSINESS PROFITS – PREPAY EXPENSES, DELAY INVOICING, INCURR EXPENSES

Speak to us as soon as possible if you would like our advise on your business position. We can look at ways to help you plan for this years tax and also the next financial year.

BEFORE 31st JULY 2022

Prepare the STP finalisation declaration and send to the ATO

• Employers with more than 20 employees have until 14 July 2022
• Employers with 19 or less employees have until 31 July 2022
• Pay Superannuation Guarantee (SG) for the quarter ended 30 June 2022 by 28 July 2022 (if you didn’t pay before 30 June to get a
  tax deduction in the 2021/2022 year)

BEFORE 31st AUGUST 2022

• Prepare the ATO Taxable Payments Report and submit to the ATO by 28 August 2022

REFLECT AND RESET YOUR BUSINESS GOALS

The end of financial year can be intense. However, one of the major perks of all the hard work you put in is accurate and up to date financial data about your business – which makes it the perfect time to evaluate the success of your business over the last year:

• What worked well and what didn’t?
• What do you enjoy about your business and what don’t you?
• What are your goals and budgets for 2022/23 and beyond?