With the 2019 End Of Financial Year about to come to a close, below is a checklist of items to see if you can save more tax this year:
1. Defer Income
Depending on your cash flow, the delay of invoicing and receiving of cash until after 1 July will reduce your income in the current financial year.
2. Take advantage of the $30,000 immediate write-off
If you need any new assets, tools, vehicles and equipment, making a purchase up to $30,000 will give you a deduction for the full amount and reduce your taxable income.
This is currently available until 30 June 2020.
3. Look to spend
Including the prepayment of expenses for the next 12 months – some expenses you can prepay are accounting fees and insurances. If you can pay prior to 30 June, you will be increasing your deductions.
Ensure your superannuation is paid up to date for all employees. If not paid on time for your employees, there is no deduction.
Also, ensure you provide us with details of any superannuation you may have paid yourself during the year so we can claim the appropriate deduction for you.
Here is a list of all the Superannuation contribution caps
5. Bad Debt
Ensure you have no outstanding invoices that need to be written off and recognised as bad debt expenses. You can do this by reviewing your accounts receivable/trade debtors and checking any old or outstanding items.
6. Donations & Gifts
If you are intending to make any donations for the year, get them in prior to 30 June. Remember, to be able to claim a deduction for a donation, it needs to be a registered charity – they need to be a deductible gift recipient. This would be confirmed on your receipts.