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2017 Year End Tax Tips

Thursday, 4 May 2017   

Wit h the end of another Financial Year fast approaching - here a few things to consider to maximise your planning for the year end.

Capital Losses

Selling poor performing assets may enable you to bring forward a tax loss that can be offset against any capital gains made throughout the financial year.

Write off Bad Debts

To obtain a bad debt reduction, a debt must not be merely doubtful and must be written off as bad during the year of income in which the deduction is claimed. The debt must have been previously included as assessable income.

Trust Resolutions

Trustees are required to make trust resolutions before 30 June in relation to how trust income will be distributed among beneficiaries.

Prepaid Expenses

For small businesses, you can bring forward operating expenses, such as rent, insurance, repairs and office supplies that cover a period of no more than 12 months.

Superannuation Strategies

Review your super strategies before year end to maximise your contributions caps, roll-over capital gains and review your eligibility for the spouse contribution tax offset and government co-contributions.

Write-off obsolete inventory

Slow moving, damaged and obsolete stock must be written off prior to 30 June to claim a tax deduction.

Claim self-education expenses

Self education expenses such as course fees, textbooks, stationery etc are tax deductible if your study is work related or if you receive a taxable bonded scholarship.

Small business CGT concessions

Capital gains tax (CGT)concessions may apply to small businesses when an active asset is disposed of.

Employer super contributions

Employers must pay all superannuation guarantee contributions for employees before 30 June to receive a tax deduction in 2017.

PAYG income tax instalments

Small businesses should review their PAYG income tax instalments and notify the ATO if expected profit will be higher or lower than previous financial years.

Home office expenses

Individuals operating businesses from home may be entitled to claim deductions for a number of expenses including room utilities, business phone costs, occupancy and motor vehicle expenses.

CGT roll-over relief

After 1 July 2016, small business owners have greater flexibility in changing the legal structure of their business. Small businesses can defer gains or losses that would otherwise be realsed when business assets are transferred from one entity to another.