The Perfect Time for Business Tax Planning - Act Now
You could be excused for not realising we are now into June. The last twelve months have been another period of Covid related interruptions, a Federal Election, cost of living concerns and global unrest. You are not alone if your business is also dealing with a high level of employee absenteeism.
The good news is there is still time to explore strategies that could help minimise your tax liabilities and take advantage of opportunities to assist your business start off positively in the new 2023 Financial year.
Now is the time to discuss with your Adviser any changes that need to be made before the end of the financial year.
Tax planning strategies that may assist you:
Bringing forward necessary expenditure to the current financial year to reduce your tax liability sooner.
Focusing on any bad debts and writing off any that won’t be collected before 30 June.
Paying your employer super contributions on behalf of your employees before 30 June. Check with the superfund the closing date for contributions for the 2022 financial year.
Ensuring compliance in relation to Director’s loan accounts and unpaid present entitlements (unpaid trust distributions)
Taking full advantage of the Instant Asset Write-Off (or Temporary Full Expensing rules) that enables your business to claim a full tax deduction for eligible assets acquired.
The end of the financial year is also a time to plan and focus on the future. Take charge of your business by considering some of these tips:
Important cash-flow planning through income tax projections and business profit projections.
Identify any areas of concern in your year-to-date figures.
Review your current financial and business structure.
Ensure you have procedures in place to lodge the Single Touch Payroll (STP) year-end finalisation report by 14 July 2022. This will allow your employees to complete their individual tax returns.
If you have provided fringe benefits to employees remember to include this in the STP finalisation report where the benefit provided is more than $2,000.
Due to the knowledge, your Evolution Adviser has about your business they can assist you to work through any changes that need to be made before the end of the financial year.