EOFY is coming!
May 29, 2015
With the end of financial year just around the corner, it’s time to start considering what your business should be preparing for before June 30.
One of the bigger items to come from this tax season for SME’s (under 2 Million P/A) is the immediate tax deduction for new (or second hand) assets costing less than $20,000 and that are installed before June 30 2017 - a great deduction to take advantage of before this EOFY. The other big ticket item is the tax rate change from 30% down to 28.5% from 1st July 2015 – which is good news. It is worth noting however the franking credit rate for dividends will be the same at 30%.
Moving on, the usual suspects apply when looking at the end of financial year;
As you can image, as a tech company, this is a big one for us. If you sell products that become obsolete, it is import that before June 30 you identify these items and write them out of your stock on hand thus creating an immediate deduction.
Bad debts, Written off.
Writing off bad debts in your accounting software before the end of financial year is important as well. You must ensure that you have taken all reasonable steps to recover the debt before you do so however (i.e. reminder letters, statements, phone calls, face to face meetings, debt collection services, etc.).
Old Plant & Equipment.
Another deduction to consider is plant and equipment you no longer use in your business. Review your depreciation schedule and advise your accountant of everything that is no longer used. Everything you write off is another deduction.
As always we are here to help, if you have any questions, concerns, or want further help for this EOFY, please contact us or call 08 8922 0000.
Tropical Business Solutions
Director at Tropical Business Solutions.