Top 5 Tax Planning tips
The end of financial year is just around the corner. Here are some tips to help you get prepared...
1. Super contributions
You can make super contributions up to $25,000. Employees can now make voluntary personal contributions and claim a deduction for these amounts in their personal tax returns (up to the concessional contributions cap).
If you are an employer, don't forget to pay all of your superannuation for employees by 30 June. Super contributions are only deductible in the year they are paid.
2. Defer income
You may be able to save some tax by deferring invoicing customers until after 30 June. Or if you are a cash business, defer receiving funds until after 30 June.
3. For small business - instant asset write-off - buy assets under $20K
Businesses with a turnover of under $10M can claim an immediate deduction for assets purchased up to $20,000, rather than having to depreciate them over a number of years.
4. Bring forward / prepay expenses Purchase consumable items before 30 June 2018. These include marketing materials, consumables, stationery, printing, office and computer supplies. Spend the money now and get the deduction this year. You may be able to claim certain expenses like income protection of you pay up to twelve months in advance.
5. Write off old debts
If you have old debtors sitting on your books, consider writing these off for tax before 30 June. It doesn't mean you need to cease collecting, but you formally note for tax that the debt is uncollectible. This then allows you to claim a tax deduction in the year your make the election.