Tax Planning Strategies Prior to 30 June 2022

REVIEW OF THE 2021/22 FINANCIAL SITUATION

AWT Accountants can assist with your Business pre year-end tax review. 

There are several planning opportunities to ensure your taxes are at the lowest possible level.

The best timing for this review would be after your 31st March 2022 quarterly Activity Statement has been processed.

Click here to contact AWT Accountants to arrange an appointment.

As accountants, our role includes not only preparing your financial statements and tax returns, but also working with you to ensure that your taxes are at the lowest possible level. 

The following are common tax planning strategies you may wish to implement before 30 June 2022: 

Depreciating Assets: Consider purchasing business assets prior to 30 June 2022, however it is important to note that the business assets need to be installed and ready for use prior to 30 June. 

Consumables: Make tax deductible purchases of consumable items by 30 June 2022, either to top-up existing supplies or to build-up a store of supplies for future needs.

Superannuation Contributions: Business taxpayers can deduct superannuation contributions made for employees or themselves (where appropriate). However, super contributions will only be deductible in the 2022 financial year if they are actually received in the fund by 30 June 2022. Most funds will have a cut-off date, so you will need to process any payments immediately.

Repairs to business assets: Generally, business taxpayers are entitled to deduct the cost of repairs to business assets (e.g. business premises and depreciating assets). Therefore, consider bringing forward (i.e. incurring) any planned deductible repairs to the 2022 financial year.

Prepaid expenses: Consider prepaying the lease, deductible annual car registration fees, rent on business premises, insurance, interest, business trips, seminars, conferences, training expenses and subscriptions by 30 June 2022 (small business criteria applies).

Bad Debts: Consider any bad debts that should be written off by 30 June 2022.

Rental Property: If you have acquired a newly built rental property during the year, you should consider obtaining a tax depreciation schedule for your property. The cost of the report is tax deductible in the year it is paid.

Defer invoicing if you are a non-small business taxpayer.

Defer receipt of income if you account on a cash basis.

Adjust owners wages to obtain a more attractive outcome.

Please contact our office as soon as possible if you believe your business would benefit from a review of your 2021/22 tax situation.