5 last-minute end of financial year tax tips
Feeling a little behind on where you need to be before end of financial year 2018–19? While the best strategies are adopted in July, there are still a few things you can do to get yourself on track.
We asked Paris Kechayas of Alpha Accounting for his advice to help small business owners conquer the last few days of FY19. He has five tips:
1. Get your paperwork in order
So you’ve been busy and left everything to the last minute? Don’t fear. The first thing to do is get your paperwork in order. Collect your data so your accountant can review your year-to-date figures and offer the best advice on any last-minute tax savings. Organising your documents and data will better ensure you claim all available deductions.
2. Consider putting some money into super
If you haven’t already maxed out your concessional super contributions, and if cash flow permits, consider doing so now. And don’t worry if you are unable to contribute the full amount by 30 June. The new carry-forward rules allow eligible taxpayers to ‘carry forward’ any unused concessional contribution cap into the next year.
But, this area of your finances requires careful planning, so it’s best to get in touch with your accountant and/or financial planner for advice tailored to your circumstances.
3. Consider bringing forward some deductions
If cash flow permits, you might want to consider trying to bring forward some deductions, especially ones you will end up paying immediately after the end of financial year 2018–19. Again, bear in mind your relative tax position between this financial year and the next to maximise the value of the deduction if you’re on the margin of one tax bracket and the next. Speak to your accountant or financial planner to see if this is something that might work for you.
4. Be aware of the new instant asset write-off limit
If you plan to purchase new equipment for your small business, take note that the instant asset write-off scheme has been increased and extended to 30 June 2020. This means you can claim the full cost of eligible assets straight away rather than depreciating it over a number of years. With this comes plenty of benefits, but make sure you’re not simply buying equipment just to get a tax deduction and speak to your accountant to make sure you’re eligible. After all, the tax saving is only part of the total cost.
5. Set yourself up for FY20
As with all good things in life, preparation is key! Proper tax planning is a continuous and ongoing process. One cannot leave such an important function to the last minute and expect meaningful results.
If you run a small business, this is particularly important. Speak to your accountant regularly and take full advantage of their advice. Ideally you should have a year-long strategy in place and be looking at any tweaks to that strategy half-way through the year.
Keeping these tips in mind will help you survive end of financial year 2018–19, but also build a solid foundation for the future.
Has tax time got you thinking that you need a bit more financial flexibility? Get in touch with Prospa and find out how we can assist you with your small business goals.
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