The End of Financial Year (EoFY) is coming!
To help you to best prepare for the coming tax season we will be sending you information, updates and tips over the month of June.
Below are some handy “Tax Time Tips” for individuals and businesses:
Collect and collate receipts.
Buy needed items before year end.
Businesses - the 100% instant write off ends 30 June.
Prepay expenses such as rent, subscriptions, insurances to bring forward tax deductions.
Individuals and Superannuation contributions
There is the option for individuals to make personal deductible contributions to your superannuation before the year end. This can be good tax planning to offset spikes in income from events such as a Capital Gain/ Rental profit/good place to put spare cash before retirement. Your super will only pay tax of 15% compared to higher rates you could pay as an individual.
New Item to consider: Carried Forward Prior Year Cap
Carry-forward concessional contributions You are able to carry forward your unused concessional contributions cap space amounts from 1 July 2018. The first year in which you can increase your concessional contributions cap by the amount of unused cap is 2019–20, but only if you have a total superannuation balance of less than $500,000 at the end of 30 June in the previous year. Unused amounts are available for a maximum of five years, and will expire after this.
Message from ATO – for businesses
Want to claim a deduction for super contributions?
Did you know, super payments are only considered to be paid for the purpose of claiming a tax deduction once they have been received by the super fund, not the date the Small Business Superannuation Clearing House (SBSCH) accepts them?
To ensure you can claim a deduction for the 2019–20 income year, you need to allow processing time for your super payments to be received by your employees' super funds before the end of the 2019–20 income year. Payments need to be accepted by the SBSCH by 23 June 2020.
Remember to check with your employees if you need to update their super fund details in your SBSCH account including, a change of ownership of a superannuation product. If there has been a change in ownership, the super fund's ABN or Unique Superannuation Identifier (USI) may have been changed for your employee’s super account. Super funds will inform members (your employees) of any such changes, which your employee should give you.
There is no change to when SG quarterly payments are due, the next quarterly due date is 28 July 2020.