As we approach the 2024 End Of Financial Year, here’s a simple checklist to help you potentially save more on taxes:

  1. Delay Income

Think about holding off on invoicing and receiving cash until after July 1 to lower your income for this year.

  1. Use the $20,000 immediate write-off

If you need new stuff like tools or equipment, buying items worth up to $20,000 can get you a full deduction and cut down your taxable income. This deal ends on June 30, 2024.

  1. Speed Up Spending

Pay for expenses like accounting fees or insurance for the next year before June 30 to increase your deductions.

  1. Sort Out Superannuation

Make sure you pay your employees’ super on time to claim deductions. Also, let us know about any super contributions you’ve made so we can deduct them correctly. You can check the updated Superannuation contribution caps (as of March 20, 2024).

  1. Deal with Bad Debt

Check your accounts receivable to see if you have any outstanding invoices that need to be written off as bad debt expenses.

  1. Handle Donations & Gifts

If you plan to donate to a registered charity, do it before June 30 to get a deduction. Just make sure the charity is a deductible gift recipient, as stated on your receipts.

  1. Set Aside for Wages and Bonuses

If you’ve promised end-of-year bonuses to your employees, set aside the money to claim a tax deduction, even if you don’t pay it until next year.

  1. Think About Capital Gains or Losses

Consider selling assets that will result in capital losses before the end of the financial year. This can help reduce your taxable gains and lower your overall tax bill.

Categories: BusinessTax