Important Tax Planning Strategies For 2019

The end of the 2019 financial year is fast approaching! Now is the time to take stock and review the financial performance of your business to date.  Over the next couple of months, you will have a one-off opportunity to review your situation, and put in place appropriate taxation strategies to ensure you pay no more tax than you should.

Understanding what the potential tax liability will be for your business and allowing time for tax planning can save you thousands of dollars.  At the very least, it will assist you in the preparation of your budgets and cash flow projections for the coming financial year.

Here are some tips on things you can do before the end of the year to ensure you have done everything that you can to minimise your tax bill:

Contact your trusted tax and accounting adviser and make time to:

  • Calculate your Year To Date profit or loss and estimate to the end of the year
  • Consider how much tax you’ll need to pay and implement some strategies to minimise this

Consider the following tax planning strategies:

  • Deferring invoicing and the receipt of income
  • Consider your old receivables, are they recoverable, if not write them off to obtain the tax deduction
  • Pay your employee Super Guarantee before 30 June to obtain a tax deduction in the 2018/2019 year even though not due to be paid until 28 July 2019
  • Make additional superannuation contributions up to your aged based limits before 30 June 2019
  • Prepay expenses for up to 12 months – insurance, interest, subscriptions
  • Make tax deductible purchases such as accounting software and office expenses for items you will need before 30 June 2019
  • Purchase business assets and have them installed ready for use before 30 June 2019, if under $30000 there’s an immediate tax deduction
  • Complete a stocktake at 30 June 2019

Things to consider post 30th June:

  • Prepare payment summaries and provide to employees by 14 July 2019
  • Prepare ATO payment summary report and submit to the ATO by 14 August 2019
  • Pay your Super Guarantee (SG) for the quarter ended 30 June 2018 by 28 July 2019
  • Work on your cashflow and operating budgets, goals and vision for the 2018/2019 year.

It has been said that businesses do not plan to fail, they simply fail to plan!

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