Top 10 End of Financial Year Tax Tips
The first boring bit of business is that 30 June falls on a Sunday this year. Hence you should be preparing to complete all your administrative work on Thursday, 27 June.
Get all your banking and financial transactions done on Thursday, 27 June. While banking systems typically achieve same day fund clearance, the legal obligation is three (3) days, so don’t rely on funds transferred from Friday the 28th to hit an account before 1 July.
If you need to, you can also defer income until the new financial year. In particular this could work where you are invoicing clients for services. Make sure that you prepare and can manage any cash flow effects that this implies.
2. The small business instant asset write-off threshold
Really dull and boring bit, but there’s up to $5,500 hiding here.
The instant write-off threshold increased this tax year from $1,000 to $6,500, meaning that if you have purchased an asset and it cost less than $6,500, you could be better off obtaining the 100% write off rather than depreciating it. Faster write offs translate to cash flow benefits as you are able to bring forward deductions which reduce your tax bill.
If you have been preparing to buy or upgrade office equipment, doing this before 30 June might be a better option.