EOFY Tax Tips for 2022
While it feels like the dust has just settled after the hectic schedule of the Christmas Holidays, the reality is that the End of Financial Year is only just around the corner. Here are a few things you can do for your business to prepare for EOFY.
Review your debtors/creditors
It is a good time to conduct a full review of your debtors so that any amounts that are uncollectable can be written off as bad debts. It is also beneficial to ensure that all creditors have been accounted for at 30 June to maximise tax deductions.
Prepay your expenses
Small businesses with a turnover of under $50M can take advantage of prepaying their expenses for the next financial year to ensure they receive a deduction in the current year.
Capital Expenditure & Instant Asset Write-Off
The Government has recently extended the Temporary Full Expensing measures for eligible entities until 30 June 2023. This means that a tax deduction can be claimed for the full purchase cost of eligible assets.
Superannuation
It’s a good idea to pay your employees’ superannuation before 30 June in order to receive a tax deduction in this financial year. Generally, if eligible, you can contribute a total of $27,500 into superannuation (including any superannuation guarantee paid by your employer already) for the 2022 financial year and claim a tax deduction
Whilst tax is important, EOFY represents the perfect opportunity to introduce any change that is over-due for your business. This is the perfect time to look at your circumstances overall, and evaluate if your existing structure is ideal for where you want to go and what type of entity you want to be.
Things to consider are:
Does your business size suit your operating structure?
Does your business have the relevant software to help you succeed?
Do you need to improve internal processes to influence overall efficiency?
As always, please get in touch if we can be of assistance to you. Phone (07) 4061 1085 or email us to get started.
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