With 30 June upon us, here are some last minute tax tips for your business. For full details, please refer to our End of Financial Year edition of Words of Wisdom.
Timing of income
Consider issues associated with the timing of income close to 30 June, such as:
Contributions in respect to the quarter ending 30 June 2016 must be made before 30 June for a deduction to be available in the 2016 year.
Stock can be valued under different methods for each item of stock including:
Conduct a stocktake before year end and identify obsolete items. Determine whether to conduct “sales” prior to 30 June.
PAYG payment summaries
PAYG payment summaries must be provided to employees by 14 July 2016 and lodged with the ATO Office by 14 August 2016, unless the ATO has granted your business an extension of time.
If you have any bad debts, ensure that you write them off prior to 30 June 2016 and prepare minutes approving the write-off. This will also enable an adjustment for any GST charged on the original invoice. Of course you must have made every effort to recover the debt even through legal avenues.
Gifts and donations
A gift of cash or property to an appropriate Deductible Gift Recipient may be deductible if made prior to 30 June 2016 and may be offset against taxable income.
Repairs and consumables
Consider prepaying for any necessary repairs or stock up on consumables prior to the end of the financial year.
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This material is informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone.