June 30 2018 is just around the corner!
Over the years the Australian Taxation Office have continued to wise up and reduce or completely remove previously available deductions.
Years ago when year end approached it was a crazy shuffle of money, cheques and paperwork. The Australian Taxation Office has sealed a lot of the old cracks, but there are still a few legitimate areas remaining that you can address prior to year end.
Below are a few standard business items for you to look at prior to the end of the Financial Year 3t0th June 2018 -:
- Are you under the $10M turnover? You may be eligible to claim a 100% immediate write-off for eligible items of plant < $20,000 (GST exclusive amount) This concession ceases at midnight 30th June 2018.
- If you are wanting to reduce your annual profit
- Pay any superannuation liabilities before June 30 so it reduces the 2018 tax position. The contributions must be cleared funds by 30.06.2018 in the recipients Superfund to claim a deduction for 2018. With super clearing houses and electronic transfers we would suggest making these contributions no later than 21st June to ensure they clear;
- Review your depreciation schedule for obsolete items;
- Perform a full stock-take and write off obsolete stock;
- In limited circumstances prepayments of interest, subscriptions or insurances can be deductible;
- Consider paying bonuses to staff;
- If you have to purchase consumables consider purchasing them prior to 30th June, this gets your deduction in this year;
- The maximum concessional superannuation contribution for 2018 is $25,000 per taxpayer, irrespective of age.
Superannuation: Changes applicable from 1 July 2017:
- The annual non-concessional cap has dropped to $100,000. (this is non deductible contributions by you into your super fund)
- The brought forward rule also dropped to $300,000 for anyone under 65.
- The amount which can be in a tax free pension became $1.6M per individual from 1st July 2017.
- Anyone with over $1.6 M in superannuation will not be eligible to make non-concessional contributions.
- Make sure over the next few months you remain under the $25,000 concessional component.
The existing superannuation age requirements and work test will continue to apply. To find out more information please contact on 07 5437 9900.
Having been in the tech industry for over 14 years, Angie has seen all forms of technology evolve exponentially. Angie is part of Poole Group's Automation Projects team, developing their internal system to automate workflow and helping small businesses to implement Xero Apps.