Top five tax tips for end of financial year success

For many of us the end of the financial year can be a frantic and stressful time. Now is the time to get organised – take a look at the year gone and plan ahead with your accountant for a more successful year.

Here are our five key tax tips for getting the most from he end of financial year;

1) Pay your super on time

Super is not tax-deductible unless it has been paid on time. Being up to date with all your payments is a good way of reducing your overall tax bill. Businesses must make sure they’re paying their employees the right amount of super, and paying it on time

2) Stock up on deductible expenses

Stock up on supplies you buy regularly now, to increase your tax-deductions. This could include office stationery, bathroom supplies and equipment. By bringing forward this expense you can reduce your tax income for the current financial year.

3) Know which tax benefits you’re entitled to

Small business is potentially entitled to a range of tax benefits including capital gains tax, income tax, GST and fringe benefits tax. It is critical for businesses to receive all the claims they are eligible for – a dollar saved is a dollar earned.

4) Depreciate your assets fully

Small businesses can claim the depreciation of assets that are worth up to $20,000. This big budget item still needs to be legislated, increases the asset limit for accelerated depreciation to $20,000. This is effective immediately as of 12 May and deductions can claimed in this financial year.

This $20,000 limit will apply to any individual asset and all small businesses with an annual turnover of less than $2 million can apply this $20,000 rule to as many individual items as they like. This includes things like tools, furniture, computers and printers. Remember to keep records of when you purchased assets and their costs in order to claim any deductions.

5) Write off any bad debt

If you’re still chasing up clients to pay their bills from the last financial year, consider writing them off as a bad debt. Bad debts are a tax deduction and will reduce your taxable income.

Organisation is the key to avoiding any nasty surprises during tax time and having a profitable financial year ahead.