Maximise your tax deductions for the 2019-20 financial year by planning and reviewing your records.

Here are top tips for businesses and individuals when it comes to year-end tax planning:
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Small business CGT concessions

Individuals operating a small business may be eligible for capital gains tax (CGT) concessions on the sale of business assets. The small business CGT concessions are available to business taxpayers with an aggregated turnover of less than $2 million or on business assets less than $6 million. Review your potential concessions for this financial year to receive the benefits of tax relief or contribute to your retirement savings through the sale of a business.

Quarterly super contributions

The super guarantee (SG) requires employers to provide sufficient super support for their employees. For the quarter period of 1 April to 30 June, SG contributions must be paid by 28 July. To qualify for a tax deduction in the 2019-20 financial year, contributions must be paid by the quarterly due date. You can make voluntary employer contributions of more than the required amount to increase benefits.

Stocktake

The year-end stocktake should involve a review of all trading stock and a decision made about its value from both a tax and commercial perspective. Obsolete, slow-moving or damaged stock should be identified by 30 June and disposed of for income purposes in order to receive a deduction.

Trust resolutions

Trustees of discretionary trusts must make and document resolutions before 30 June 2019 about how trust income will be distributed among the beneficiaries. If you have not already done so, setting up an interim financial statement can assist with distributing trust funds.

Deductions for expenses

There are a number of expenses that can be claimed for deductions in your individual 2019-20 tax return. Self-education expenses, such as course fees, textbooks, and stationery can be tax deductible if they are work-related or you receive a taxable bonded scholarship. Business owners operating from home may also claim deductions for home office expenses, such as room utilities, motor vehicle costs and depreciation and occupancy expenses.

Depositing contributions

Any contributions that have been recorded for your SMSF need to be deposited into the fund’s bank account by no later than 30 June. This is especially important where members have reported concessional or non-concessional contributions.

Capital losses

Selling assets that perform poorly, such as shares, could enable you to bring forward a tax loss. This can be offset against any capital gains made throughout the financial year.

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