Preparation for end of financial year

For many business owners and individuals it will be a time of endless paperwork.  The most important thing during this time of year is to plan well. By preparing in advance, many last minute headaches can be avoided and you can take better advantages of the opportunities before June 30. When making financial decisions, your main goal should not only be to minimise tax. Make wise financial decisions taking into account your own circumstances.   Following are some simple strategies to think about.  Not all strategies may be applicable to you.  Consider your personal circumstances and give us a call if you are uncertain. Super Contributions – Concessional (before tax contributions): Ensure that, if you are able, you have contributed the maximum allowed concessional super contributions. It is no good making super contributions if you can’t pay next week’s rent, so it is best to assess your own situation. Concessional contributions mainly include: • Employer contributions such as: o compulsory super guarantee contributions o any additional voluntary super contributions your employer may make o salary sacrifice amounts • Personal contributions by an eligible person that are allowed as an income tax deduction The concessional contributions cap is the limit on the amount of concessional contributions you can make each year before you pay extra tax. Please note: For contributions to be claimed they should be received by the fund by 30 June.  Expenses: If it has been a good income year, incur as many of your expenses prior to year end.  You can also pre-pay 12 months expenses and claim the deduction in the tax year. Ensure that you have all the details of work related expenses. Deductions you can claim are generally related to your profession.  Charity: If you are thinking of donating money, you may be able to receive a tax deduction for gifts and receive that deduction this financial year. Repairs and maintenance: If you hold an investment property that is profitable, consider doing minor repairs and maintenance required prior to 30 June. Stock / Inventory: You need to do your stock count for the end of the year. Also remember you can claim a deduction for obsolete stock or stock that is written off, hence it’s important to get an accurate picture of your closing stock balance. Capital Gains: Make sure you receive the concessions by holding on to assets for more than 12 months. Bad debts: If you have previously been taxed on the income and are unable to recover a debt you can claim bad debts written off prior to June 30 as a tax deduction.  Please note, the above are ‘tax saving’ measures that have to be done before 30 June, so now is the time to think about them and don’t forget to call us if you have a query.