How is it already the last month of the Financial Year? Time flies when you’re reviewing royalty statements.
With only a few weeks before June 30, now is the time to review your business performance and take advantage of any ATO schemes to help minimise the amount of tax you pay.
Here’s a few points you may benefit from…
Company Tax Rate
The company tax rate for small companies with turnover less than $50 million has reduced to 25% for the 2022 financial year.
Temporary Full Expensing of Depreciating Assets
If you have purchased, or are going to purchase, a business use asset before 30 June 2022, you may be eligible to fully deduct the cost of the asset. This also includes second-hand assets.
The superannuation guarantee will increase from 10% to 10.5% from 1 July 2022.
It doesn’t stop there either, with the rate rise continuing all the way through to 12% by 2025 – great for employees, but for business owners, make sure you factor this added cost into your budgets and forecasts.
Employees Superannuation – June 2022 Quarter
To claim a deduction for employee (or contractor) superannuation in this financial year the employee’s super needs to be received before 30 June 2022 to be eligible for a deduction. Delays can occur in processing payments to clearing houses, so you should start making the payments now.
Any superannuation paid after 30 June must be received by the funds by 28th July 2022, but will not be deductible until the 2023 financial year.
Superannuation Contributions for Business Owners
If you plan on making any additional superannuation contributions for business owners, they need to be paid as soon as possible. If you are considering making any additional contributions, please contact us.
Do any of the below apply to your business? If so, contact to us to talk about utilising some potential deductions in this financial year.
- Do you have stock or merchandise on hand? If so, you will need to undertake a stocktake at 30 June 2021. Contact us for an explanation on how to do this.
- Do you have any bad debts that you don’t expect to recover? Now is the time to assess and write these off.
- Can you prepay or bring forward any expenses such as rent or insurance?
- Are you looking for an excuse to buy that new piece of equipment?
- Can you delay any June invoicing till July?
Working from home
Up until 30 June 2022 you can claim 80 cents for each hour worked from home. Remember to keep a record of the hours you have worked at home such as a diary or timesheet.
Use your car for work?
Where possible, we always recommend preparing a 12 week logbook to assist in supporting and maximising your work related car travel. However, it is possible to claim up to 5,000 kms at a rate of 72 cents per km without a logbook.
Generally, you need to keep a travel diary if you travel away from home for six or more nights in a row to claim a deduction for your expenses. You are required to keep receipts for all work-related travel, except in some circumstances where you are employed and receive a travel allowance.
APRA AMCOS Royalties
Any APRA AMCOS Royalties need to be included in your individual tax return. Foreign withholding tax will need to be assessed on an individual basis to see if a tax offset is available.
Special Professionals Income Averaging
If you’ve received a large chunk of income such as an advance this financial year ask us how you may be able to take advantage of income averaging. It would save you significant tax over a number of years.
Study Loan Repayment Threshold
If you have study and training loans (HELP, VSL, SFSS, SSL, ABSTUDY SSL and TSL), the 2022 compulsory repayment threshold is $47,014.
The above are just a few current examples of what pre 30 June 2022 tax planning strategies may be applicable to you and your business. Strategies will vary depending on your individual circumstances including your business group structure, and the year-to-date net profit or loss position.
Please contact us to discuss these in further detail, and for us to prepare a plan to help you navigate both year-end tax planning and other pre 30 June 2022 requirements for your particular situation.