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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.

High-level items:

  • 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.



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