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End of Financial Year for 2019 is just around the corner and NOW is the time to review your financial position and undertake taxation strategies that may benefit YOU and YOUR business.
• Immediate Asset Write Off
If you are a Small Business Entity revised tax concessions apply as at 2nd April 2019.
– Depreciating assets with a value of up to $30,000 are immediately deductible and eligibility criteria has been broadened to include SME’s up to $50million annual turnover (up from $10 million).
– Depreciating assets with a value of more than $30,000 will be depreciated in one pool at a rate of 15% in the first year and 30% in future years.
– Avoid last minute superannuation payments. Employee superannuation payments need to be received by the Small Business Superannuation Clearing House or Superannuation Fund prior to June 30th.
• Bad Debts /Accrual Basis
– Review trade debtors and particularly those that are over 90 days.
– Write off the debt and avoid tax and GST on amounts you will not receive.
– Document each bad debt as confirmation the debts were written off prior to year end.
• Prepayment of Expenses
– Prepayment of expenses such as rent, interest, consumables, and the like, made prior to June 30th for SME’s are able to be claimed as an expense and as such tax deductible.
• Value Trading Stock
– Trading stock can be valued as stock at year end cost, market selling value, replacement value or obsolete stock value. Businesses can switch between methods each year which can have the effect of either bringing forward deductions or moving amounts to the following year. And, importantly if stock is obsolete it should be written off.
• Division 7A Loans
– If you have borrowed money from your business it must be paid back by June 30th to avoid it being classified as a dividend. If these funds are not returned it will be assessed as taxable unfranked dividends.
The above points are just the “tip of the tax strategies iceberg” and we would encourage all of our clients, suppliers and introducers to contact their tax professional/accountant to discuss what may best suit their business.
If Chase Finance are able to assist in any way with equipment finance, property loans and/or business finance, please feel more than welcome to contact any of the team to discuss your requirements.
We welcome your enquiry and look forward to hearing from you.
Disclaimer: The material and contents provided in this email are informative in nature only, and do not take into account your personal financial position. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained. Contact your Accountant or Property Tax specialist.
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