Last Minute Tips to Reduce Tax
So it’s the first week of June and you’re probably thinking that it’s too late to do anything material to reduce your tax before June 30.
It’s both obvious and true that like any other life endeavour nothing usually beats a combination of great advice followed by a commitment to work to a plan. Of course tax planning is no different in this way.
That aside, the accounting team here at Accountplan have come up with some great last minute tips you can still look to implement before 30th June in order to reduce that tax burden.
- Contribute money into super up to your cap. If you are employed, consider salary sacrificing a lump sum into your super.
- For small business, prepay such debts as rent, licenses, insurance and interest.
- Check to see if you are carrying bad debts, if so, write them off to claim a deduction.
- Consider advertising and/or sponsorship.
- Pay employee super entitlements on time. Failure to pay super contributions on time not only can be costly with extra ATO compliance but it also makes the super guarantee NOT DEDUCTIBLE.
- If you have obsolete stock either scrap it, or even better donate it. Either method will result in a tax deduction.
- Defer invoicing until after June 30 hence reducing income to declare this financial year.
- Purchase a business asset up to $20,000 and claim the instant write-off. If you are GST registered, this will be the pre-GST cost of the asset. If you are NOT registered for GST, this will be the GST inclusive cost. The asset must also be installed and ready for use.
For further information on the above please call us on 07 3883 8999 so a tax professional can review your options with you.