It’s nearly 30 June ….
Have you ?
* Paid your super? A tax deduction is available for personal super up to $25k
* Topped up your super if your account balance is below $500k?
* Made a spouse super contribution?* Reviewed your super balance and adjusted your investment strategy so you know how much you’ll have when you retire?
* Do you have an idea of how much tax you will owe/be owed for 2020? If so, incorporate this in your cashflow.
* Considered that the small company tax changes form 27.5% to 26% in 2021? Take advantage of this.
* Bought assets for immediate tax deduction?
* Prepaid your expenses?
* Paid directors’ fees or family members’ wages & deducted PAYGW (& paid super on this?)
* STP – most businesses should already now be using Single Touch Payroll. Small family business (all employees are related) start on 1 July 2021.
* Reviewed your debtors and actually written them off (if bad) before 30 June?
* Identified any obsolete or old stock and scrap it or write it down to its correct market value before 30 June 2020?
* Paid or committed to Bonuses? They are only deductible when they are actually incurred i.e. at 30 June the business must be committed to paying them.
* Varied your June PAYG quarterly instalment (due 28 July) to assist with your cashflow if your income is down in 2020?
Government Stimulus
Cash Flow boost is not taxable. If received in a company, it can represent unfranked profits which will be taxable when paid to shareholders. If received by a sole trader, partnership or a discretionary trust, cashflow boost should not be taxable.
Jobkeeper Payments are taxable, but are offset by payments to employees so there should be no net taxable income.
See our earlier June email below for more tax strategies or contact me on 02 98163111.
Look forward to hearing from you.