End of Year Tax Planning
Maria & Anthony talk about the high-level items you need to focus on when building your taxation strategy for 2019/2020.
Prepayments of rental and interest, up to 11 months
Superannuation payments must be paid and cleared prior to June 30 to gain a tax deduction
Superannuation contribution capped at under $25K for each member
The carryforward rule allows for a top-up based on previous years
Will you need to borrow?
Ensure that while you have a great tax result, you don’t affect your ability to obtain a loan
If you report on a cash basis, pay everything before June 30
Watch that your invoicing is still following your normal monthly trend
If you report on an accrual basis, ensure your invoices are dated June 30
Keep your stock levels down
Plant and equipment purchases for instant asset write off $150K (smart idea if cash flow permits or under finance)
Don’t over commit your cash flow.
Income protection and estate planning, utilising your superannuation fund
Write off old or obsolete stock
Review your fixed asset register with your accountant; this is a quick win
Banks are now looking at your last two years accounts for loan approvals; make sure an aggressive tax plan does not affect your borrowing capacity
Write off your bad debt
Donations are a tax deduction; this is a positive win/win - giving back
Cashflow and budgeting are critical - coming in a new blog
Why is tax planning vital for a business that has suffered in the final quarter of 2019/2020?
Cashflow is a major driver; if not available, look at deferments and the timing of expenditure.
Book a time to talk to Anthony.