Tax Planning for Businesses

Ideas for Tax planning for Businesses

Instant deduction for assets purchased for  less than $20,000

For businesses with a turnover of less than $10 million, assets purchased with a value of less than $20,000 can be written off immediately as a tax deduction.  It is important to note that the assets must be acquired and operating in the business prior to 30^th June to claim this deduction.  This deduction is also available in the 2025 financial year.

Maximise deduction of superannuation contributions

Superannuation contributions are only deductible for a business where the funds are received by the fund prior to 30^th June 2024.  Therefore, ensure any employee superannuation contributions have been paid prior to 30^th June allowing for time for the superannuation funds or the small business clearing houses to receive these funds.

Prepay Expenses

Consider purchasing consumables prior to 30^th June 2024, such as stationary, computer supplies etc.

Also consider any repairs or maintenance that may be required to be undertaken and have these done in June 2024.

If you are a small business, consider prepaying any loan interest, rent or subscriptions before 30^th June and claim a full tax deduction in this financial year.

Review Accounts Receivable

Review your accounts receivable in June 2024 and write off any bad debts.  This will ensure you don’t pay tax on income that you may not receive as well as allow a GST adjustment if you account for GST on an accrual’s basis.

Stocktake

If you maintain stock in your business, perform a stocktake of inventory and write off any stock that is obsolete or worthless.

Please contact our office if you have any questions in relation to the above opportunities and how they may impact you.