With the introduction of Single Touch Payroll (STP) for ALL employers, the importance of tax planning each quarter for all Directors will be imperative.
End of Year tax planning for Business
- Conduct a stocktake
- Review your debtors and creditors and write off bad debts and clear out any erroneous creditor invoices
- Collate records of asset purchases or expenditure on improvements to calculate depreciation expense claims and for capital gains tax purposes.
- Check in with WLM if you wish to utilise the Small Business concessions for assets less than $20,000 - $30,000.
- Lodge yearly reports or returns for PAYG withholding, Fringe Benefits Tax (FBT), Good and Services Tax (GST), Payroll Tax and the taxable payments reporting system
- Meet superannuation requirements.
Business.gov.au recommends you review finances with your accountant to see if you met your targets and what you can do differently next financial year. Create a cash flow forecast to manage any potential shortfalls and ensure you can still pay your staff and suppliers. It is also recommended that you review and update your business and marketing plans. Take time to set yourself up for the year ahead.
Regularly reviewing and updating your plans will help you to:
- Remind yourself of your goals and priorities
- Assess whether your strategies are working
- Adapt to any new changes in your environment
- Make the most of new opportunities as they come your way
- Prioritise and maximise your effort (work smarter, not harder!)
End of Year tax planning for Individuals
- Talk to your Financial adviser or accountant if you are expecting to have substantially more income in 2019 compared to 2020.
- Check the structure of any mortgages and investment properties with your accountant and financial adviser.
- Review the timing of work related and investment expenditure such as conferences, computer purchases, financial advice fees and interest payments.
- If you have purchased a new investment property talk to your accountant about obtaining a quantity surveyor report.
WLM and the ATO warn clients away from risky tax schemes, be wary of promoters who:
- Claim their product is zero-risk
- Discourage you from obtaining independent advice
- Do not have a product disclosure statement
- Recommend changing private expenses into business expenses so they can be claimed against income
- Inflate or artificially create deductions
- Suggest arrangements that involve deferring or not declaring income
For more information on WLM's business tax services click here and for personal tax services click here.