The top 10 year-end tax planning issues we recommend you pay particular attention to.

2022 has seen may of us coming out of the back-end of COVID-19 with State governments continuing to offer financial support for extended lockdowns during the period.

This support may or may not be taxable, so it’s important that you review the types of amounts you have received during the year, and plan properly to mitigate tax impacts on the year-end results.

We have listed below the top 10 year-end issues you should pay particular attention to:

  1. Asset write-offs and asset registers: Maximise your deductions through temporary asset write-offs.
  2. Prepayments for <$50m turnover businesses: Consider prepaying expenses to defer income.
  3. Trust distributions and company dividends: Ensure trust distributions and dividend payments are tax effective, given ATO releases.
  4. Employee superannuation and incentive arrangements: Manage the increase in Super Guarantee Contribution (SGC) rate to 10.5%. Also, pay year-end super contributions, and lock-in employee incentive payments.
  5. Grouping losses and profits: Consider grouping of losses and profits within family groups to access the lower company tax rate of 25%.
  6. Personal services income (PSI): Review personal service income distributions within a group, in line with new ATO guidance.
  7. Losses and company loss carry-back: Ensure losses are available and company loss carry-back can be accessed.
  8. Research and Development: Ensure R&D claims are properly documented.
  9. Non-deductibility of ‘no-ABN’ payments: Ensure ABNs have been received for contractors paid.
  10. Private company loan compliance: Make sure minimum repayments are made.
These top 10 items are a few of the key issues your Bentleys advisor will help you with as part of your year-end process.
We have prepared a more comprehensive guide to help you step through the different opportunities, how they should be implemented in your group and the future tax cashflow consequences from adopting the strategies.

At Bentleys, we’re here to help you get where you want to be.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.

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