- Get your accounts and records up to date
Know where things stand. It’s hard to make decisions without the right information.
- Talk to us
Let’s discuss your current position, look at the options available to you and create a simple plan to help you make the most of them.
- Review your structure
With tax laws continually changing, your structure might be costing you money. It’s a great time to review it and see what opportunities you might be missing out on. The ATO provides lots of tax relief for businesses and investors to change their structure, so the hassle and cost is minimal. Companies now enjoy the low rate of 26% flat rate of tax and it is dropping to 25% next financial year. Making use of this low rate can create a huge tax savings, especially over multiple years.
- Prepay expenses
Some expenses can be prepaid for next financial year before 30 June 2021. Meaning you can get the tax deduction for things like subscriptions, rent and insurance in this year.
- Take advantage of the instant asset write-off
The ATO has extended the instant asset write off until June 2022, so you can still immediately deduct the cost of purchasing new and used business assets. This can be a massive tax saving for your business, but you need to ensure you meet the basic criteria or you may miss out.
- Defer income
Perhaps you have the option for deferring income until after 30 June 2021. Maybe some of your invoicing can be ut off until early July. If so, this will mean you dont have to pay tax on that income until next financial year. Generally you are taxed on income when you create an invoice, not when the money is received, so the simple act of deferring your invoicing can be a bonus. You should also be cautious of the effect this can have on your cash flow.
- Contribute to your own super
Making contributions to your superannuation is usually tax deductible. You can contribute up to $25,000 in deductible super contributions each year, so if your cash flow allows it, this can be a major tax benefit and you still hang on to the money in your super account. Contributions are only deductible when they are deposited prior to 30 June 2021, so we suggest you do so several days beforehand to ensure your super fund receives the money and credits your account in time.
- Pay employee super contributions
Don’t forget that employee superannuation contributions are only deductible to your business when they are paid, so it is no-brainer to pay any outsntading employee super prior to the end of June. It’s money you have to pay within 4 weeks after the end of the financial year, so why wait a whole 12 months before getting the tax deduction.