Holmans 2019-20 End of Financial Year Tax Tips

With June 30 fast approaching, there is still time to put in place strategies that could save you paying more tax than you need to this financial year. To give you a helping hand we’ve put together a list of our best tips to maximise your tax savings.

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You can download the information detailed on this page as a printable PDF for future reference. Click here to access the PDF document.

1. Pay Quarterly Super

Firstly, have a look at the Super Guarantee (SG) quarterly due dates for payments to your employees.

SG Quarter SG Due Date
1 July – 30 September 28 October
1 October – 31 December 28 January
1 January – 31 March 28 April
1 April – 30 June 28 July

All Australian employers are required by law to pay the correct amount of super on or before the superannuation due date each quarter. If you don’t pay an employee’s super on time and to the right fund, you must pay the superannuation guarantee charge (SGC). Importantly, the entire SG is not tax-deductible.

2. Additional Catch-Up Superannuation Contributions

Consider maximising your personal superannuation contributions. In addition to the general $25,000 concessional contribution (CC), the 2019-20 financial year is the first year where you are entitled to carry forward unused amounts that accrue from 1 July 2018 onwards.

The carry forward rule allows individuals to make additional CC in a financial year by utilising unused CC cap amounts from up to five previous financial years providing their total superannuation balance at June 30 the previous financial year was less than $500,000. For example, if you made a $10,000 CC in 2018-19 you would have unused general CC cap for the year of $15,000 there this year would you be able to make a contribution of up to $40,000.

3. $150,000 Instant Asset Write Off

The instant asset write-off threshold of $150,000 (up from $30,000) for businesses with an aggregated turnover of less than $500 million will now be extended to 31 December 2020. Please be mindful that if you are thinking about purchasing a passenger vehicle the limit is $57,581 for the 2019-20 income tax year.

4. Stocktake

Obsolete, slow-moving or damaged stock should be identified by 30 June and disposed of for income purposes in order to receive a deduction.

5. Wages & PAYG Payment Summaries

Ensure you have reconciled your wages and are ready to generate the PAYG Payment Summaries for each of your employees by 14 July. Before issuing the PAYG Payment Summaries, check the yearly payroll summary agrees to your account totals in your Profit and Loss Statement, ensure any deductions are handled correctly (salary sacrificed super, family support payments so-on), and RESC (Reportable Employer Superannuation Contributions) are reported correctly.

You do not need to provide your employees with payment summaries for information you report and finalise through Single Touch Payroll.

6. Taxable Payments for Contractor Reporting

The Taxable Payment Annual Report (TPAR) for those in the building and construction industry is due by 28 August each year. Penalties may apple for not lodging your TPAR by the due date.

7. Prepaid Expenses

Small businesses can claim an immediate deduction for prepaid expenses including, but not limited to, rent, insurance, utilities, and repairs of up to 12 months. Making these prepayments means you bring forward deductions and reduce your tax liability for the current financial year.

8. Home Office Expense

From 1 March to 30 June 2020 a temporary new shortcut method has been introduced to calculate home office expenses in addition to the current fixed rate (52 cents) and actual cost method. Under the shortcut method you can claim a deduction of 80 cents for each hour you work from home from 1 March to 30 June 2020 as long as you:

  • • are working from home to fulfill your employment duties and not just carrying out minimal tasks such as occasionally checking emails or taking calls
  • have incurred additional running expenses as a result of working from home

Of course, should you have any queries, please contact our office to discuss your options.

Download a printable version

You can download the information detailed on this page as a printable PDF for future reference. Click here to access the PDF document.

Need assistance and want to know more?
Contact Holmans today;

Holmans Noosa: (07) 5430 7600 or email info@holmans.com.au
Holmans Maroochydore: (07) 5451 6888 or email infohm@holmans.com.au

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.