Just in case you missed it, the financial year ends tomorrow. Finance editor Tiffany Hutton has compiled a checklist of things to remember to do before the calendar ticks over to the new year.
Yup, it’s upon us again. As your accountant or tax adviser is probably always reminding you, you should be thinking about tax all year, not just in the days leading up to June 30. This is true. If you haven’t already sorted out any capital gains tax, for instance, you’re probably going to have to wait till 2012. But there are a few things that you’ve still got time to deal with:
- Super Guarantee contributions. You must have paid your Super Guarantee contributions for any eligible staff by 30 June for these to be deductible for this financial year. You also risk a penalty if you don’t make the contributions on time.
- Personal super contributions. If you don’t pay super for yourself as an employee but make personal contributions, you also need to make these by 30 June to get the tax deduction.
- Private loans to/from your business. It’s pretty common practice, particularly in the early days of establishing a business, for money to move back and forth between you (as the business owner) and the business. Be very sure that these are set up correctly and/or paid off in their entirety before the end of the year or you could end up paying more tax.
- Directors’ fees and bonuses. You may be able to claim on these for this financial year if you advise the people to whom you are going to pay them — and you must have documentation. You don’t actually have to make the payment in this financial year.
- Write off bad debts so that you can claim back the GST credits (for debts outstanding for over a year).
- Prepay expenses, including interest in advance if this is an option.
- Stock up — if your business’s turnover is under $2 million, you can claim an immediate deduction for most assets that cost up to $1,000.
And now it’s time to start thinking about next year.