TOP TIPS TO SAVE ON TAX

Planning can significantly reduce any tax liability you may have, but leaving it until the last minute – or worse, not giving it any thought at all – can be very costly.

The last day of the financial year, June 30, falls on a Monday this year, so make sure you have everything sorted by Friday June 28 to allow transactions to be processed by June 30.

Here are five other potential steps to trim your tax.

1. DELAY INCOME/ BRING FORWARD EXPENSES

Where possible, and cashflow permitting, defer income until next financial year by holding off invoicing until after June 30. 

2. PREPAY COSTS

Prepaying expenses that relate to a period no longer than 12 months out can boost your deductions for professional subscriptions, business travel, insurances and loan interest.

3. REVIEW DEBTORS AND TRADING STOCK

Writing off any bad debts by June 30 also lets you claim a refund of GST paid on the sale of these debts. Take a look at stock as you could generate a tax deduction here too.

4. NEW ASSET PURCHASES

Things have changed quite a bit from last year so be sure to speak to John before making a major business purchase ahead of June 30.

5. BOOST YOUR SUPER

Adding to your super can mean saving on tax with a deduction for pre-tax super contributions – up to $25,000 annually if you’re aged 59 and under and up to $35,000 if you’re aged 60-plus. 

If your employees are yet to nominate their preferred super fund, you’ll need to make their super contributions to a fund that offers a ‘MySuper’ product.

If you have any questions, please get in touch.