Year End Considerations
In the lead up to year end, a quick reminder about a few matters and strategies to consider prior to 30th June, 2023:
Superannuation Payments
To obtain a deduction for June quarter Superannuation payments, these must be made – and in the employees’ fund – prior to 30th June, 2023.
If you intend on taking the deduction in this financial year, we recommend you make these payments now to ensure the monies are received in funds prior to 30th June.
Also note, the Superannuation Guarantee Charge increases from 10.5% to 11% from 1st July, 2023. If you manage your own payroll, please ensure you take this increase to account when you process your first payroll in July.
Inventory
Please ensure you undertake a stocktake on or before 30th June, 2023. If this is undertaken prior, ensure you account for any “ins and outs” of inventory between the day stock is counted and 30th June, 2023.
This also includes all clients who have a stock of books they have published.
It would be helpful if you can supply us with your stocktake details as soon as you complete this activity.
Motor Vehicles
You should ensure your log books are up to date and take a reading of your car’s Odometer at 30th June, 2023.
Please provide us with the odometer reading and business use percentage as soon as possible after 30th June, 2023.
Instant Asset Write-Off/Temporary Full Expensing
Businesses with (grouped) turnover of up to AUD5bn can claim a deduction for each asset purchased and first used or installed ready to use by 30th June, 2023. If you are looking to purchase new equipment in the next 6 months, it may be worthwhile you considering purchasing and installing prior to 30th June, 2023.
Bring Forward Expenses – Defer Income
Consider pre-paying any expenses due after 30th June, 2022 (ie rent or interest – should be discussed with your banker now) and/or defer issuing invoices until into the new year.
Bitcoin continues to be in the spotlight
Cryptocurrencies (not just Bitcoin) will continue to get a lot of attention this tax time after the ATO has expressed concern that Australian taxpayers may be labouring under a misconception that cryptocurrency gains are tax free or only taxable when the holdings are cashed back into Australian dollars.
Other Tax Planning Strategies
Please refer to our Monthly Client Update for other tips & hints.
As always, should you have any queries, please don’t hesitate to contact us.