Preparing for the End of the Financial Year
With 30 June fast approaching, now is a good time to review your tax position, organise your records and consider whether any end-of-financial-year strategies may be relevant to your circumstances.
Gather Your Records
A good starting point is to gather receipts, invoices and statements for expenses that may be tax deductible. This may include work-related expenses, home office costs, professional memberships, self-education expenses, tools and equipment, donations, income protection premiums and investment-related costs.
Consider Bringing Forward Deductions
You may also consider whether any deductible expenses can be prepaid before 30 June, rather than paid next financial year. Where eligible, this can bring the deduction forward into the current year.
Examples may include professional memberships, income protection premiums, investment loan interest, subscriptions or other deductible costs. For business owners take advantage of the $20,000 instant asset write off by purchasing new equipment.
The rules can differ depending on the expense and your circumstances, so it is important to confirm eligibility before prepaying. Let us know if you have any questions.
Review Your Superannuation Strategy
Superannuation can also be an important part of EOFY planning. Depending on your circumstances, you may wish to review whether additional concessional contributions, personal deductible contributions, spouse contributions or after-tax contributions are appropriate.
Some people may also be eligible for government co-contributions or unused concessional contribution cap rules.
Before making additional super contributions, it is important to check your contribution caps, timing requirements and paperwork. For example, if you intend to claim a personal super contribution as a tax deduction, you generally need to submit the required notice to your super fund and receive confirmation before claiming the deduction in your tax return.
Need help preparing for EOFY?
Speak with Laurie or Jessie about your tax planning and end-of-financial-year opportunities.