Latest News

Hot Issues
spacer
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
spacer
Compare your business
spacer
2024 Year End Tax Planning Guide (Part 2)
spacer
ATO to crack down on rental income, WFH deductions this tax time
spacer
How to Draft a Standard Form Contract
spacer
GST, PAYG withholding a ‘significant portion’ of $50bn tax debt
spacer
ATO changes will make it harder for over 42,000 small businesses.
spacer
The Deadliest pandemics in History
spacer
Budget breakdown – Federal Government Analysis
spacer
Federal Budget 2024
spacer
Winners & Losers
spacer
2024 Year End Tax Planning Guide (Part 1)
spacer
Medicare levy surcharge OR basic health insurance ?
spacer
ATO warns of ‘serious penalties’ for unlawful tax scheme promoters
spacer
ACCC scam report
spacer
Employees taking more sick days - and it's getting worse
spacer
Foreign residents selling property in Australia
spacer
How much does negative gearing really cost – an overview and an opinion?
spacer
The Shortest-reigning Monarchs in History
spacer
FBT Reminder – Odometer Reading
spacer
ATO’s debts on hold campaign prompts new IGTO guidance
spacer
A comprehensive collection of small business benchmarks
spacer
The 2025 Financial Year tax & super changes you need to know!
spacer
Underperforming employees: When can you terminate?
spacer
A comprehensive list of guides to industry specific tax deductions.
spacer
‘Renewed concerns’ about economy sees consumer sentiment dip: Westpac
spacer
Oldest Buildings in the World.
spacer
Small businesses may ‘collapse under strain of payday super’, IPA warns
spacer
ATO’s hands tied with scrapping on-hold debts, expert says
spacer
What Drives Your Business Growth and Profits?
spacer
Australian Taxation Office (ATO) shifting to firmer debt collection activity
spacer
Why employee v contractor comes down to fine print
spacer
Sharing economy reporting regime for platform operators
spacer
Vimeo test
Article archive
spacer
Quarter 1 January - March 2024
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
2024 Year End Tax Planning Guide (Part 1)

In May and June, we will add two articles to our website that help you plan and take action before the end of the 2023-24 financial year.  Both Part 1 and 2 will cover the following, though Part I focuses on key strategies to manage your tax bill.  All are worth dedicating time to review and think about how your business can organize your affairs in these ways.

.

Areas of tax planning to be considered:

  • Key Tax Minimisation Strategies.
  • Round Up of Other Year End Tax Issues.
  • Other Tax Effective Strategies for Businesses to Consider.
  • Superannuation Tax Planning Opportunities.
  • Immediate Write Off & Temporary Full Expensing for Individual Small Business Assets.

Key Tax Minimisation Strategies  

Delay Deriving Assessable Income

One effective strategy is to delay deriving your income until after June 30, 2024.  Consider the following:

a. Delaying the Timing of the Derivation of Income until after June 30.

b. Timing of Raising Invoices for Incomplete Work (Businesses)

This tactic needs thought as it can adversely affect your cash flow and lead to issues better left alone. Invoices raised before 1-7-2024 are income in this financial year. Please note, not banking amounts received before June 30 until after June 30 do NOT qualify because the income is deemed to have been earned when the money is received, or the goods or services are provided (depending on whether you are on a cash or accruals basis of accounting).

·       Cash Basis Income - Some income is taxable on a cash receipts basis rather than on an accruals basis (e.g. rental income or interest income in certain cases). You should consider whether some income can be deferred.

·       Consider delaying your invoices to customers until after July 1 which will push the generation of the income into the next financial year and defer the tax payable on it. If you operate on a cash basis, you simply need to delay receiving the money from your customers until after June 30.

·       Lump Sum Amounts - Where a lump sum is likely to be received close to the end of a financial year, you should consider whether this amount (or part thereof) can be delayed or spread over future periods.
 

2Bringing Forward Deductible Expenses or Losses

Prepayment of Expenses
In some circumstances, small businesses and individuals who derive passive type income (such as rental income and dividends) should consider pre-paying expenses prior to 30 June 2024. A tax deduction can be brought forward into this financial year for expenses like:

  • Employee Superannuation Payments including the 11% Superannuation Guarantee Contributions for the June 2024 quarter (any such contribution MUST be received by the Superannuation Fund by June 30, 2024 if a tax deduction is to be claimed).
  • Superannuation for Business Owners, Directors, and Associated Persons.
  • Wages, bonuses, commissions, and allowances.
  • Contractor Payments.
  • Travel and accommodation expenses.
  • Trade creditors.
  • Rent for July 2024 (and possibly future additional months – speak to your accountant to see if this is possible in your case).
  • Insurances including Income Protection Insurance.
  • Printing, Stationery and Office Supplies.
  • All forms of advertising and promotion.
  • Utility Expenses - Telephone, Electricity & Power.
  • Motor Vehicle Expenses - Registration and Insurance.
  • Accounting Fees.
  • Subscriptions and Memberships to Professional Associations and Trade Journals.
  • Repairs and Maintenance to Investment Properties.
  • Self Education Costs.
  • Home Office Expenses – desk, chair, computers etc. This area of expenses has changed significantly in recent years.  Speak to your accountant about your situation.
  • Donations to deductible gift recipient organisations.
  • If appropriate, consider prepaying any deductible investment loan interest. This could include interest payments on an investment loan for either an investment or commercial property or an investment portfolio you hold.

A deduction for prepaid expenses will generally be allowed where the payment is made before 30 June 2024 for services to be rendered within a 12-month period. While this strategy can be effective for businesses operating on a cash basis (not accruals basis).
 

Superannuation Contributions - some low or middle-income earners who make personal (after-tax) contributions to a superannuation fund may be entitled to the government co-contribution. The amount of government co-contribution will depend on your income and how much you contribute.
 

Capital Gains/Losses – Note that the contract date (not the settlement date) is usually the key sale date for capital gains tax purposes. Here are several important points regarding the management of capital gains and capital losses on a sale of your assets from a tax planning perspective:

      i.         If possible, consider deferring the sale of an asset with an expected capital gain (and applicable capital gains tax liability) until it has been held for 12 months or longer. By doing so, you could reduce your personal income tax. For example, if you hold an asset for under 12 months, any capital gain you make may be assessed in its entirety upon the sale of that asset.

    The Capital Gains Tax (CGT) Calculation Method*

Individual Taxpayer

Date of CGT event   

CGT payable on an asset held < 12 months

CGT payable on an asset held ≥ 12 months

From 21/09/1999

Tax on 100% of nominal gain

Tax on 50% of nominal gain

     ii.         * A capital gain will be assessable in the financial year that it’s realised.
 

   iii.         If possible, consider deferring the sale of an asset with an expected capital gain (and applicable capital gains tax liability) to a future financial year. By doing so, you could help reduce your personal income tax for the current financial year. This could also be of benefit if, for example, you expect that your income will be lower in future financial years compared to the current financial year.
 

   iv.         If appropriate, consider offsetting a realised capital gain with an existing capital loss (carried forward or otherwise) or bringing forward the sale of an asset currently sitting at a loss. By doing so, you could reduce your personal income tax in this financial year. Note that a capital loss can only be used to offset a capital gain.
 

Accounts Payable (Creditors) - If you operate on an accruals basis and services have been provided to your business, ensure that you have an invoice dated June 30, 2024, or before so you can take up the expense in you accounts for the year ended 30th June 2024.

 

Please do not hesitate in contacting us if you have any questions on the above or other tax related matter.

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2022 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922. Site by Acctweb