The end of the tax year is just around the corner.  Now is the time to see what you can do to reduce your tax for 2024.

Call us if you would like to discuss any of the information below.  For information regarding personal tax planning opportunities – CLICK HERE


Business Tax

Aside from the return of the $20,000 instant asset write off for this tax year, not much has changed.  Listed below are a few items and prompts that are worthy of consideration.

Small Business Instant Asset Tax Write off – $20,000

Small businesses with an aggregated turnover of less than $10 million can immediately deduct the cost of eligible assets up to the value of $20,000.  The $20,000 threshold is on a per asset basis. The assets need to be in use or ready for use by 30 June 2024 to qualify for a deduction in the 2024 tax year.

Assets over $20,000 will be depreciated through the small business pool or under general depreciation rules.

Pay Employee Superannuation before year end

To claim a tax deduction in the 2024 financial year, you need to ensure that your employee superannuation payments are received by the super fund or the Small Business Superannuation Clearing House (SBSCH) by 30 June 2024. Cash received by the superannuation fund on or after 1 July 2024 will be a deduction in the 2025 tax year.

The last business day is Friday 28th June (with 30th June being on a Sunday this year), therefore payments made by Friday 21st June should allow sufficient time for the money to arrive with the super fund pre June 30. (Note: Each superannuation clearing house has guidelines regarding timeframes.  You may wish to contact your superannuation clearing house directly to confirm their requirements).

Defer Income

If possible, defer issuing further invoices and receiving cash/debtor payments until after 30 June 2024. This strategy pushes tax payable to the 2025 year.

Bring Forward Expenses

Purchase select items BEFORE 30 June 2024. These include marketing materials, consumables, stationery, printing, office and computer supplies. Spend the money now and get the deduction this year.

Prepay Expenses

Small Business taxpayers can make prepayments (up to 12 months) on expenses (e.g. loan interest, rent, subscriptions) BEFORE 30 June 2024 and obtain a full tax deduction in the 2024 financial year.

Year-end Stock Take

If applicable, you need to prepare a detailed stock take and/or work in progress listing as at 30 June 2024. Review your listing and write-off any obsolete or worthless stock items.

Also check the costs for each item.  Does the cost per item reflect current cost values?  It is important to ensure all costs are recorded correctly.  Correct product cost information will help with pricing decisions and ultimately, business profitability.  Please contact us if you require assistance with reviewing your product costing data.

Write off Bad Debts

Writing off a bad debt requires good documentation and/or system records. Review your trade debtors listing and consider collectibility of all debtors, focusing on those older than say, 90 days.  For alls debts that are considered bad (eg not able to be collected despite all efforts), record the details as you process the write off through your accounting system.  Write-off of all bad debts must be processed BEFORE 30 June 2024.