30th June 2019 is rapidly approaching, so now is the time for business owners to talk to their Accountants to look at tax planning. Tax planning enables taxpayers to consider a range of strategies which could help to effectively manage and plan for their taxation liabilities.
There are some common and simple strategies that are available to improve your overall tax position as outlined below:
Access to Small Business Depreciation
- Eligible businesses can take advantage of accelerated depreciation by using Small Business Pooling which allows 15% depreciation on cost of an asset purchased in the first year and then 30% depreciation each year following the first.
- Instant Asset Write Off – Eligible businesses can write off 100% of the cost of any new depreciating asset purchased for less than $30,000 between 2nd April 2019 and 30th June 2019. The threshold changed during the 2019 financial year as per below:
Superannuation
- Paying your employees super guarantee before 30th June 2019 ensures that this payment is deductible in the current financial year.
- Consider making a personal superannuation contribution, up to the cap of $25,000 before 30th June 2019. Claiming as a personal deduction may be beneficial to your tax position. (Remember – any super guarantee paid during the 2019 by an employer is included in this cap).
Bad Debts
- Reviewing your trade debtors regularly is a great way of establishing and writing off of bad debts where there will be no prospect of recovering the outstanding monies owed.
Revaluation of Stock Values
- As stock becomes old, obsolete or damaged, the value of this stock should be revalued to get a true estimate of the value of the stock. By doing this, it may create further deductions for your business.
Prepayments
- Consider prepaying expenses in advance such as insurance, subscriptions and interest, this will allow you to claim the expense in full for the financial year.
Please contact MGI Adelaide if you would like to discuss your eligibility for any of the above options.
