Business Tax Planning Issues to Consider Prior to 30 June 2012
Issues to Consider Prior to 30 June 2012
- If you pay superannuation for your employees, consider making a payment prior to 29 June 2012 in order to be able to claim it as a tax deduction in your 2012 tax return;
- Review your aged debtors and determine whether any debts are bad and need to be written off in the 2012 financial year. In order to be classified as a bad debt it must be considered unrecoverable and be written off in your ledger prior to 30 June;
- Ensure that any repairs & maintenance work is completed prior to 30 June 2012 to be able to claim a tax deduction in your 2012 tax return;
- If you wish to pay any bonuses to your staff, ensure that you draw the cheque and deduct Pay As You Go Withholding prior to 29 June;
- If you are a small business (turnover under $2m), you can prepay certain deductible expenses in the 2012 financial year and claim a deduction in the 2012 tax return. This includes expenses for services that will be wholly provided within 12 months of payment such as office supplies, consumables, insurance, rent, lease payments, advertising or maintenance contracts. You will however need to consider the effect of prepaying such expenses on your cash flow in the short term;
- If your turnover is over $2m, only prepayments of expenses that are required by law or are under $1,000 are deductible in the year of payment.