Maximise your tax deductions for the 2019-20 financial year by
planning and reviewing your records.
Here are top tips for businesses and
individuals when it comes to year-end tax planning:
Small business CGT concessions
Individuals operating a small business may be eligible for capital
gains tax (CGT) concessions on the sale of business assets. The small business
CGT concessions are available to business taxpayers with an aggregated turnover
of less than $2 million or on business assets less than $6 million. Review your
potential concessions for this financial year to receive the benefits of tax
relief or contribute to your retirement savings through the sale of a business.
Quarterly super contributions
The super guarantee (SG) requires employers to
provide sufficient super support for their employees. For the quarter period of
1 April to 30 June, SG contributions must be paid by 28 July. To qualify for a
tax deduction in the 2019-20 financial year, contributions must be paid by the
quarterly due date. You can make voluntary employer contributions of more than
the required amount to increase benefits.
The year-end stocktake
should involve a review of all trading stock and a decision made about its
value from both a tax and commercial perspective. Obsolete, slow-moving or
damaged stock should be identified by 30 June and disposed of for income
purposes in order to receive a deduction.
discretionary trusts must make and document resolutions before 30 June 2019
about how trust income will be distributed among the beneficiaries. If you have
not already done so, setting up an interim financial statement can assist with
distributing trust funds.
Deductions for expenses
There are a number of
expenses that can be claimed for deductions in your individual 2019-20 tax
return. Self-education expenses, such as course fees, textbooks, and stationery
can be tax deductible if they are work-related or you receive a taxable bonded
scholarship. Business owners operating from home may also claim deductions for
home office expenses, such as room utilities, motor vehicle costs and
depreciation and occupancy expenses.
that have been recorded for your SMSF need to be deposited into the fund’s bank
account by no later than 30 June. This is especially important where members
have reported concessional or non-concessional contributions.
Selling assets that perform poorly, such as shares, could enable you to bring
forward a tax loss. This can be offset against any capital gains made
throughout the financial year.
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a starting point, designed to help
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significant impact on your personal and
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