Taxation EOFY Planning Tips

Reduce the tax your business pays in 2020 with these year end tips:

1. Bring forward any July/August expenses and pay prior 30 June
2. Prepay expenses – prepay up to12 months expenses
   – rent, subscriptions, interest, insurance, etc
3. Delay deriving income
   – if cashflow can handle it, consider deferring some income until after 30 June,
4. Utilise the Instant Asset Write-off – up to $150,000
   – presently due to revert to $1,000 from 1/1/2020
   – beware luxury car limit – $57,871 – < 1 tonne and < 9 passengers
5. Stock – undertake stock take as at 30 June
   – write-off any obsolete or damaged stock
   – value stock at lower of cost, market value or replacement cost
6. Review Debtors and write-off any bad debts by 30/6/2020
7. Depreciation – review your depreciation schedule and write-off any obsolete
   items
8. Superannuation – top up your volountary contributions
   – maximum is $25,000 in deductible contributions
   – can be either employer or personal
   – must satisfy age, less than 65 or satisfy work test
   – note that carry forward rules opportunity may apply
9. Review capital gains issues
   – assess any unrealized capital losses for offsetting any gains
   – consider extra super contributions option
10. Super Rebate – spouse contributions
    – up to $540
    – phases out spouse income $37,000 – $40,000
11. Super Co-Contribution
    – the ATO will contribute up to max $500 on $1,000 non-concessional amount
    – phases out income $38,564 – $53,564

Call Think Accountants today to learn more.