How to save tax and minimise GST before 30 June

Brisbane Business Accountant - Saving tax and minimising GST

By Wally Djachenko

The opportunities for end of year tax planning are almost gone.  30 June is just around the corner, and once that day comes, unfortunately there’s little you can do but count your pennies and add up your receipts.

As your accountants, we’re committed to helping you find ways to save tax. But even before you have that conversation with us, there’s some simple things you can do to minimise your tax.

Paying expenses

If your tax return or BAS is prepared on a cash basis, then paying expenses before 30 June will allow you to get a tax deduction or a GST credit for this period.  But just remember – in this situation the expense actually has to be paid.  Having a tax invoice isn’t enough.

Of course, if you pay after 30 June you’ll still get the deduction – but the tax benefit will be 12 months later.  If you lodge your BAS quarterly, the GST credit will be deferred for 3 months.

If you’re going to pay those expenses fairly soon, it makes sense to pay before 30 June.

Prepayments

Along the same lines, think about any other expenses you might be paying in the next 12 months.  If you prepay now then you can bring the tax benefits and GST credits forward.

In particular, if you’re thinking about large asset purchases, it may be advantageous to make them before 30 June.  Remember the $20,000 immediate write-off.  Any assets under that amount – ex-GST if you’re registered – will be deductible straight away (assuming you qualify as a small business entity).

Super contributions

You may also consider making additional super contributions.  But if this sounds like a good idea, remember that the super fund must receive and process the contributions before 30 June in order for you (or your business) to qualify for the tax deduction.  Be aware that super funds have tight deadlines at this time of year because of the large volume of extra contributions received.

These ideas are a small sample of the tax saving strategies you might be able to implement.  What works for you will depend on your circumstances.

Call now to make an appointment, and let’s save you some tax.

Phone: 3822 7201