Eyes on Business Newsletter - June 2015
Posted on Monday 15th June 2015
This weekend the team are walking 40km's in and out of Townsville to support wounded Australian soldiers and families of the fallen.
If you're looking at making a charity donation before June 30 to increase your tax deductions, we'd love it if you considered donating to "walking wounded". To make a donation, please email email@example.com.
It's not hard to do Tax planning. IT'S NOT ROCKET SCIENCE, however it is important to do some basic stuff.
Here are some steps to save paying the ATO. You must do all this before June 30, 2015 to gain the best results.
10 Things to Check Before June 30
1. Touch base with your accountant
Have your data and bookkeeping up to date to at least April 2015, flick a profit and loss, Balance Sheet to your accountant to review. A good accountant is important to assist you in claiming all the deductions you are entitled to. An hour investment with them will benefit you greatly in keeping cash with you!!
I personally look at my accountant in saving me tax, for the wonderful holiday I want to take in 2016. If he does not look over my books, then I could kiss my holiday away as I could pay it to the ATO. The accountant can give the hard working business owner some relief. Their knowledge is powerful for your bank account.
2. Prepay Expenses!!!
Before year end, determine if there are any on-going expenses you can prepay, for example if you pay Income Protection Insurance, Business insurances, prepay rent for a few months in advance. All these steps defer the income tax. Why not claim a deduction this financial year!!
3. Donate to a favourite charity or cause?
Donations of $2 or more are tax deductible if donated to a registered charity organisation and you don’t receive a benefit for the donation such as a raffle ticket. Keep all receipts and claim at year end. This weekend the team are walking 40km's in and out of Townsville to support wounded Australian soldiers and families of the fallen. If you're looking at making a few charity donations before June 30 to increase your tax deductions, we'd love it if you considered donating to "walking wounded". To make a donation, email firstname.lastname@example.org.
4. Are you covered by Income Protection Insurance?
An insurance policy that covers your normal wage in the event of you being injured or sick and not able to work is a valid tax deduction, if paid annually or monthly the amount paid should easily be obtainable from your insurance company.
5. The good news about bad debts?
It might pay to go back through your outstanding invoices to identify any doubtful debts to write off before the 30th June.
6. Commit to employee bonuses or director fee bonuses
If you are committed to paying employees or directors end-of-year bonuses, the accrued expense can be claimed as a tax deduction even if its not physically paid until the following year.
7. Investment Property Repairs and Maintenance expenses
Steamming from your rental property can be claimed in full or in part, so it can be helpful to bring forward any expenses that can be undertaken before June 30.
8. Take advantage of the $20,000 net of GST instant asset write off!
Applies to all Plant & Equipment including cars used in your business for Businesses under $2 million turnover. Please touch base with your accountant for further clarification!
9. Superannuation contributions can be an effective way to reduce tax
The superannuation threshold has increase from $25,000 to $30,000 for individuals less than 49 years and for those aged 49 or over on the last day of the financial year the threshold is $35,000. Take advantage of these increased rates to save on tax and boost your retirement savings. Payment needs to be made and receipted prior to 30th June. Retirement is important!
10. Defer Invoicing Income
If you have a good income for this year, then maybe you could hold off issuing customer invoices to the 1st July. This will mean that tax will not be due on that income until the following tax year, but please ensure cashflow can handle a delay in customers paying you for one month.
- Eyes on Business Newsletter - April 2015
- Eyes on Business Newsletter - May 2015
- Eyes on Business Newsletter - September 2015
- Eyes on Business Newsletter - December 2015
- Eyes on Business Newsletter - May 2016