June 30 is nearly upon us, and a range of tax experts have given their best advice for how businesses can best maximise their tax position this year.
This year, June 30 falls on a Sunday, meaning all necessary payments and transfers should be well underway by this point to ensure they’ve cleared.
Outside of the importance of getting your admin right, there are some other key items that should top the list of every business and business owner’s tax planning this EOFY, according to Chartered Accountants Australia and New Zealand:
1. Keep your records
You must be able to verify all of your deductions. The ATO is more powerful than ever in spotting suspect claims, and you want to ensure you can prove an expense has been appropriately documented and verified.
2. Don’t forget superannuation
You can make extra contributions to your superannuation fund, but those funds need to be cleared before Sunday. Speak to your accountant if you’re unsure whether the funds will make it on time.
3. Don’t hide
Declare all your sources of income. The ATO has unprecedented access to third party data and sophisticated systems for tracking publicly available data, such as those posted on ride-sharing and home-sharing platforms.
4. Get to giving
Contributions to charity over $2 are tax deductible, which is a solid incentive to have some heart this tax time.
5. Single Touch Payroll
Many Australian employers have either switched, or are in the process of switching, to Single Touch Payroll (STP) functions, which report PAYG and super data to the ATO. If you or your employer is not yet STP compliant, it may be best to wait a couple of weeks before lodging a tax return.
For a comprehensive run down of the tips, tricks and strategies you need to know this EOFY, you can access this free webcast courtesy of My Business and sister title Accountants Daily.