With the end of the tax year upon us, now is the time to see what you can do to reduce your tax for 2023.

Please contact us if you would like to discuss any of the information below.

For personal tax planning opportunities, please click here

Business Tax

Temporary Full Expensing – ends 30th June 2023

Businesses with an aggregated turnover of less than $5 billion can immediately deduct the business portion of the cost of eligible new depreciating assets and if turnover is less than $50 million then also second-hand assets.

These assets need to be in use or ready for use by 30 June 2023.

Car cost limit and how it applies

Both the instant asset write-off scheme and the temporary full expensing scheme have a limit on how much of the cost you can claim for a car.

Both schemes only allow you to claim up to $64,741 of the car’s value (excluding GST) no matter its price. This limit disappears, however, if you’re purchasing a commercial vehicle capable of carrying more than nine passengers or more than one tonne and it is used 100% for business purposes.

Pay Employee Superannuation before year end

To claim a tax deduction in the 2023 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 2023. If received from 1 July 2023, then this can only be claimed in the 2024 tax year.  We suggest payment be made no later than 23rd June to ensure it is received on time.

Defer Income

If possible, defer issuing further invoices and receiving cash/debtor payments until after 30 June 2023. This strategy pushes tax payable to the 2024 year.

Bring Forward Expenses

Purchase consumable items BEFORE 30 June 2023. These include marketing materials, consumables, stationery, printing, office and computer supplies. Spend the money now and get the deduction this 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 2023. Review your listing and write-off any obsolete or worthless stock items.

Write off Bad Debts

Review your Trade Debtors listing and write-off all bad debts BEFORE 30 June 2023. Prepare a management meeting document listing each bad debt, as evidence that these amounts were written off prior to year-end and enter these into your accounting system before 30 June 2023.

Prepay Expenses

Small Business Concession taxpayers can make prepayments (up to 12 months) on expenses (e.g. loan interest, rent, subscriptions) BEFORE 30 June 2023 and obtain a full tax deduction in the 2023 financial year.