We recognise the fact that business owners and individuals want to reduce their tax liability within the framework of the Australian taxation laws and to achieve the best possible financial outcome you need to plan in advance. We encourage you to schedule a meeting in the last quarter of each financial year to assess your tax planning options. Below are several tax planning strategies to consider but we urge you to meet with us in May or June each year to prepare some preliminary financial statements to determine what steps you should take before the end of the financial year.
Year End Stock Take / Work in Progress
If applicable, you need to prepare a detailed stock take and/or work in progress listing as at 30 June. Review your listing and write-off any obsolete or worthless stock items.
Write-off Bad Debts
Review your trade debtors listing and write off all bad debts prior to 30 June. Prepare a minute of a Directors’ meeting, listing each bad debt as evidence that these amounts were actually written off prior to year-end.
Small Business Concessions - Prepayments
'Small Business Concession' taxpayers can make prepayments (up to 12 months) on expenses (e.g. Loan Interest, Rent, subscriptions) before 30 June and obtain a full tax deduction in that financial year.
Ensure that the Trustee Resolutions are prepared and signed before 30 June for all Discretionary (Family) Trusts. Please contact us for more information about these resolutions.
Some general tax planning opportunities include maximising allowable tax deductions in this financial year including:
- paying directors’ fees and any staff bonuses before June 30
- pooling depreciating assets
- scrapping of depreciable assets
- writing off bad debts pre June 30
- pre-paying expenses like interest, subscriptions, rent etc.
- pay superannuation before June 30