In this article, Trish Anderson from Anderson Tax Solutions shares her tips for the end of the financial year.
Another financial year is rolling around – what a year this one has been!
If you are a small business owner there may be a few extra things to consider this year, and you might be wondering if you’ve covered every base you need to, with all these extra allowances and boxes to tick.
So let’s start at the beginning.
If you received Jobkeeper payments, you should include this in your ordinary income. The Cash Flow Boost payments are generally Non Assessable Non Exempt income so aren’t taxable.
It may be that the extra Jobkeeper income actually pushes your annual income higher than you would have ordinarily earned which might mean extra tax to pay.
Superannuation is also a topic of interest this year. Do you want to claim a deduction for this financial year? Are you eligible? You’ll need to ensure that payments are made and processed by the super clearing house in time. The ATO clearing house needs payments made by 23rd June.
What about the super guarantee rate? It’s increasing on 1 July to 10%. Any payroll paid to your employees from 1 July will have super paid at the higher rate. The threshold of $450 earnings per month is also no longer. This may be important for you to budget for if you have employees working minimal hours. You will now be liable for that super expense.
Does some of your equipment need updating? You may like to consider purchasing the updates before the end of the financial year so that you can get the immediate write off. My suggestion is, as always, make sure you can afford the purchase – either the cash now or the repayments ongoing if you are financing. If you just have your eye on the tax deduction you may find that the budget doesn’t stretch when it comes to the repayments.
As always, making sure you have really good accounting systems in place will save you time, headaches and dollars. This doesn’t have to be a super expensive program – you can access a great software program for a reasonable cost. It will give you the tools to track your business, plan for the future and keep all your compliance on track.
A good system will let you report your Single Touch Payroll, track your Taxable Payments Annual Report and calculate your gst for BAS reporting.
Certified Practising Accountant