Tax planning is so important for business owners.  By taking action before 30 June, business owners have the time and opportunity to implement a number of strategies to minimise tax and take advantage of any tax concessions available.

The strategies to be implemented does depend on the circumstances of each business.  This article explores some of the strategies available.

The time to act is NOW.  Waiting until after 30 June will be too late.

1. PAY EMPLOYEE SUPERANNUATION NOW

If the business has sufficient cash, you may consider making employee contributions for the June 2022 quarter before 30 June 2022, rather than waiting until the SG due date of 28 July 2022.  To claim a tax deduction in the 2022 financial year, you need to ensure that your employee superannuation payments are received by the super fund or the Small Business Superannuation Clearing House (SBSCH) by 30 June 2022. 

You should avoid making last minute superannuation payments as processing delays may cause them to be received after year-end.

2. REPAIRS & MAINTENANCE

Make payments for repairs and maintenance (business, rental property, employment) BEFORE 30 June 2022 to claim a deduction for the 2022 income year.

3. BRING FORWARD EXPENSES

Purchase consumable items BEFORE 30 June 2022. These include marketing materials, consumables, stationery, printing, office and computer supplies. Spend the money now and get the deduction this year.

4. WRITE-OFF BAD DEBTS

Review your Trade Debtors listing and write-off all bad debts BEFORE 30 June 2022. Prepare a management meeting document listing each bad debt, as evidence that these amounts were written off prior to year-end and enter these into your accounting system before 30 June 2022.

5. DEFER CAPITAL GAINS

If possible, arrange for the Contract Date for the sale of Capital Gains assets (such as property), to occur AFTER 30 June 2022. 

The Contract Date is generally the key date for working out when a sale occurred, not the Settlement Date!

If you are a small business – please also refer to our article ‘Tax planning for small business entities’ for further strategies on minimising your business tax.