EOFY Tax Planning Strategies

11th June 2020

All taxpayers are allowed to arrange their affairs in a manner that remains legal but which minimises their taxation liabilities.

Income tax is one of the largest expenses for most businesses and individuals, so it requires careful planning, budgeting and monitoring.

It is possible to manage your taxes and gain control over their effect on your finances through Tax Planning Strategies, such as the following: 

Purchase of Assets:
Purchase of assets costing $150,000 or less can be claimed 100% as a tax deduction.
This threshold is for EACH asset purchased, there is no limit to the number of assets you can buy and includes second hand assets.
If a commercial car is purchased this can be claimed 100%.
If a non-commercial car is purchased, you can claim a % up to the tax deductible limit of $52,346 ex GST for business use.

Prepayment Strategies:
Small Business Entity taxpayers making prepayments before 1 July 2020 can choose to claim a full deduction in the year of payment where they cover a period of no more than 12 months (ending before 1 July 2020).

Contributions up to $25,000 to a complying superannuation fund can be tax deductable, to the extent contributions are actually made (i.e., they cannot be accrued but must be paid by 30 June).

If you would like to discuss any of the above or other tax planning strategies, please contact our office.