Top up Super
Make use of the generous super limits that may be available to you. Not only can you top up your super to the max limit of $27,500 but you could also have some unused super contributions that you could use to make extra top up contributions. These can be used as a tax deduction and are a great way to offset tax while making a tax effective investment.
Purchase a new business asset – The temporary expensing is set to end 30 June 2023. It now could be your last
chance to buy an asset that can be fully expensed. This has probably been the biggest tax advantage to small
businesses over the past few years. Don’t miss what could be your last chance to access this, remember that a
$100,000 asset can save you $25,000 in tax in that year.
• Budget 2023 has allowed for automatic write off extension for small business with turnover under $10m and for assets up to $20,000 (This has not yet been made law).
Capital Gains Tax (CGT)
If you have made a gain on the sale of an asset remember that you can only offset this with a capital loss. Look to take some capital losses that you might have. Also remember that CGT goes on contract date and not settlement date. If you want to push your tax into the next year then make sure you don’t sign the contract until after 1 July.
Prepay expenses
If you know you are going to purchase that expense within the next month or so, think about bringing it forward and purchasing it before 30 June to get that tax deduction. This can also help with the current supply issues and price increase on certain products by locking in a fixed price and demand. This is subject to cash flow so keep that in mind.
Scrap assets
Review your asset register and determine what items need to be replaced or have kicked the bucket. This also goes for obsolete or damaged stock. Ask your accountant for a copy of your depreciation schedule to review the items listed on there.
Fringe Benefits Tax (FBT) Exemption on EV vehicles
The government has made EV vehicles FBT exempt so if you are looking to avoid FBT this could be something for you to consider.
Trust Distributions
Make sure you have dealt with trust distributions before 30 June. Contact you accountant NOW to deal with this.
Repairs and maintenance
Look to make any repairs or maintenance expenses that need doing before 30 June.
Small Business CGT relief
If you are looking at retirement or selling your business or a business asset, make sure you contact your accountant first to see if these concessions are available to you, it can mean simple planning could help you save thousands in tax.
Brad Callaughan is a specialist in taxation, accounting and business advisory. He is the managing director of Callaughan Partners that was formed to deliver and exceed client’s expectations, whilst charging upfront fees. Brad is an avid property investor as well as having a passion for investing and business. He can be contacted at http://www.callaughanpartners.com.au
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
