With the end of the financial year fast approaching, here are 5 quick tips to get you prepared for EOFY.
- Be aware of tax changes: Many tax changes come into effect at the start of a new financial year. Check ATO and chat to your accountant for the latest news on tax changes.
- Check your superannuation is in order by 30 June: Businesses must ensure that they are paying superannuation for their employees and all payments are completed before 1 July. Business owners should be aware of the cash flow implications and make plans accordingly. Check on Superannuation Policy.
- Get your paperwork up to date: Having the right paperwork will help you streamline the EOFY process. Some examples of records you need to have on hand are:
- Receipts for sales and purchases
- A statement of you B2Bpay credit card processing fees which can likely be claimed as a tax deduction – click here for instructions on how to easily access this.
- Tax returns, activity statements and employee super contributions
- GST returns and Business Activity Statements (BAS)
- Manage your deductions: It is important to know what you can claim. One of the best tax breaks for many businesses is the instant asset write-off, which offers a means to acquire capital assets and obtain an immediate tax deduction. Examples of ‘assets’ put forward by the government include coffee machines, forklifts, tractors, freezers and labellers. The scheme was due to expire on June 30, 2022, but Treasurer Josh Frydenberg announced in the Federal Budget that it will now continue until June 30, 2023. You can read more about it and how you can use B2Bpay to take advantage here. There is also now no cap on the scheme, which originally has a cap of $150,000 for purchase.
- Other COVID-19 relief: Other government initiatives such as JobKeeper Payment may impact your EOFY tax situation. For latest information, refer to General COVID-19 support for businesses and employers
This content was put together for information purposes only. The Content does not constitute tax and/or legal advice and should not be relied upon as such. You should seek tax, legal or other professional advice before acting or relying on any content.