7 February 2019
by Chris Kirkwood
- Related topics
- Personal Tax
It’s that time of year again and for many, the end of the financial year can feel busy and frantic with so many things to complete before 30 June. To help, we have put together a checklist of the key items to complete and tax planning opportunities to consider before 30 June:
- Bad debts: Review outstanding debts prior to year end and identify any debts that are not likely to be recovered. On the basis that you have done everything practically possible to recover the outstanding debt, consider writing off the outstanding amount as a bad debt and recover the relevant GST in your next BAS.
- Superannuation: Ensure all super contributions are paid across to the complying super fund or retirements savings account prior to 30 June 2019. By doing so the associated cost qualifies as a tax deduction in the 2018-2019 year as opposed to waiting until the next financial year.
- Fixed Assets: Review your fixed asset register, and write off any depreciable assets identified which are no longer being used. Also, noting that from 2 April 2019 (7:30pm AEST), the immediate asset write off has been increased to $30,000 for small businesses with an aggregated turnover less than $50m.
- Bonuses: Employee bonuses are an area where changes to internal processes can change your tax position. By aligning your employee contracts, timing of personnel reviews and communication of results, accrued employee bonuses that would otherwise not be deductible until the following year can be claimed as a deduction in the current year.
Key due dates are as follows:
|Staff Superannuation – 9.5% Gross Wages||30 June 2019*|
|June Quarter Business Activity Statement||28 July 2019|
|PAYG Summaries distributed to staff||15 July 2019|
|Payroll Tax 2018-19 Annual Reconciliation lodgement||22 July 2019|
|PAYG Annual Reconciliation forwarded to the Australian Taxation Office||14 August 2019|
*Note that superannuation contributions for employees need to be received by the respective superannuation funds prior to 30 June 2019 in order to obtain a tax deduction in the year ended 30 June 2019. The latest due date for superannuation guarantee contributions for the quarter ended 30 June 2019 will be 28 July 2019, to avoid potential penalties and additional tax consequences.
For Individuals / Trusts:
- Superannuation: If your superannuation is in pension phase, please ensure that your minimum pension amounts have been withdrawn before 30 June 2019. Please advise if you require assistance in determining the minimum pension payments to make.
- Motor Vehicle: Motor vehicle log books are only valid for 5 years. If your log book is 5 years old, please complete a new logbook for a continuous, representative 12-week period.
- Trusts: If you have a trust, to comply with relevant trust legislation, distribution minutes must be completed before the end of the financial year. This will ensure that the income of the trust for the year is distributed in accordance with the trust deed.
If you would like personalised assistance with preparing for year end, or would like to book in a planning meeting, please contact your engagement partner on 02 9283 1666.