Hopefully you have JobKeeper payments in progress and are taking a breath.
With the coming 12 months likely to mean a cash shortage in the economy, getting your tax right is more important than ever.
Immediate asset write offs
If you have cash or are using the low-interest rates to invest in your business, assets purchased from 12 March to 30 June 2020 for up to $150,000 are eligible for a 100% write off or can be deducted against your tax. You need to meet conditions to be eligible, so check with us before you make the acquisition.
Income deferral or acceleration
Consider signing contracts after 30 June. There may also be reasons to increase your income in the 2020 year by bringing income into the current year.
Many businesses struggle to stay on top of their inventory. Now is a good time to review your inventory line by line and write off obsolete stock.
Write-off bad debts
Ensure you do your best to collect old debts. If you are on accruals accounting and have made every effort to collect bad debts, it’s time to write them off before 30 June.
If your turnover is less than $10 million, consider making any prepayments (for less than 12 months) you can before 30 June. The sorts of expenses to consider are interest, leases, rent, insurance and advertising.
Ensure you pay the June super payment early so it is in super funds’ accounts by 30 June. It needs to be paid to the funds to get the tax deduction.
Unpaid superannuation guarantee amnesty
The super guarantee (SG) amnesty is a one-off opportunity to correct past unpaid SG amounts. Employers have a six-month window, until 7 September 2020, to disclose, lodge and pay unpaid SG amounts for their employees. Employers can claim deductions and not incur administration charges or penalties during the amnesty. Catch up before 30 June to get the deduction.
For a detailed tax planning meeting, please arrange a meeting with us.