End of Financial Year

Posted 26 Jun '20

End of Financial Year

By Yana Robinson

Important information for businesses to remember in the lead up to 30 June 2020.

The 2020 financial year has certainly been a year of unexpected twists and turns. From the bushfires over the new year which devastated so many communities across Australia to the COVID-19 pandemic which continues to present unprecedented obstacles and challenges to businesses globally.

We would like to take this opportunity, on behalf of the team at WDF Professional, to extend our sincere thanks for your ongoing support during these challenging times. Whilst we acknowledge that there are many challenges still ahead of businesses as they navigate a post COVID-19 world, we look forward to working closely with our clients to support them on this journey.

With the end of the financial year just around the corner, we are working with our clients on implementing tax planning strategies that ensure desired accounting and financial outcomes are achieved for the year. Examples of these tax planning strategies include:

Instant Asset Write Off

The instant asset write off threshold was increased to $150,000 from 12 March 2020. Whilst the legislation has not been passed as yet, it has been announced that the cut off for this will be extended from 30 June 2020 through to 31 December 2020.

Fixed Asset Review

The end of the financial year provides a good opportunity to review your fixed assets held and dispose of any obsolete items.

Expenses

Bring forward any necessary business expenses that may have usually been paid in the coming months.

Stocktake

Perform a stocktake at the end of the financial year.

Dividends

Declare dividends to meet minimum repayments on any shareholder loans.

Director Fees & Bonuses

Directors fees and any employee bonuses should be paid by 30 June to ensure the deduction in the current financial year.

Bad Debts

Review your accounts receivable and write off any bad debts by 30 June.

Employee Superannuation Contributions

Bring forward the payment of your employee’s superannuation for the June quarter to claim the deduction in the current financial year.

Personal Superannuation Contributions

Make a personal superannuation contribution. Consider the opportunities that the new Carried Forward Concessional Contributions rules allow.

Capital Gains & Losses

Consider any capital gains that have occurred in the financial year and realise capital losses to offset the gains.

If you have any questions about the above tax planning strategies and how they could apply to your business, please reach out to your WDF Professional team member.