EOFY Tax Strategies
Tax planning is about managing risks and appropriately manage your tax exposure. The end of the financial year is probably like any other month. But for many taxpayers, it is time to gather faded receipts and furiously searches what deductions can be claimed as the dreaded deadline approaches.
We have listed tax tips and advice for the last few days of this financial year to help you get your accounts in order and your claims perfected before it’s too late.
1.Deductions It is recommended during tax time that you claim all appropriate deductions that you can. This includes rent, utilities, or repairs for your business, or professional and accounting advice.
ATO Assistant Commissioner Kath Anderson warns taxpayers about trying to claim deductions simply because they believe they are entitled to them. “People think that they have an entitlement even though they have not spent the money. You have to have still spent the money,” Anderson told Fairfax. “It has to be related to earning your income, and you have to be able to show us how you calculated the claim.”
To help you know what you can claim, we have a detailed list of some expenses you can claim: https://www.thetaxaccountant.com.au/post/what-deductions-can- you-claim
2. Pay your super contributions before 30 June
Employees and self-employed individuals can claim a tax deduction yearly to a limit of $25,000 for personal superannuation contributions, given that the superannuation fund has physically received the contribution by 30 June 2020 and the individual has given their superannuation fund with a notice of intention to claim document.
Payments to a superannuation fund should be made sufficiently in advance of 30 June to ensure there is time for the payment to be processed and credited to fund’s bank account by 30 June. If it is not credited to the fund’s bank account by 30 June, the deduction will be deferred to the next income year.
Superannuation housekeeping: Log into your super account and check your balance Check what you’ve paid in fees this financial year Check your investment returns for the financial year Check your beneficiaries are up to date Check your insurances are relevant.
3.Keep the right records It’s never too late to start getting your records together for next year. Tax agents warn time and time again that when the tax season comes, a well presented and a detailed set of records will quickly resolve any issues they may have.
Make digital copies of any paper records and back them up online.
Keeping good records will also help you: · keep track of your business health, so you can make sound business decisions · manage your cash flow · demonstrate your financial position to lenders, suppliers and accountants · complete and lodge your tax and super records and returns.
With all that is listed above, we understand that tax is complicated and is constantly changing. If you need help or have any question, don’t hesitate to reach out to us. The Tax accountant will help you with your financial affairs.
Disclaimer: This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser.