2018 End of Year Tax Planning Checklist

The end of the financial year is quickly approaching, so now is the time to run through our checklist to see if there are any planning opportunities you wish to take advantage of, and to ensure you have taken care of those other end of year tasks.

Business

 If you……. You may want toSo you can
Count your stock
Have a business that holds stockEnsure you do a stocktake on 30 June and keep a record of the market, cost and replacement values.- Use the value which gives you the best tax outcome possibly saving you tax, or deferring paying tax.
Write off obsolete stockHave a business that holds stock Write down or dump obsolete or damaged stock prior to 30 June.
Save paying tax on stock you don’t actually have!
Pay staff superEmploy staff Pay their April – June super before 30 June 2018. The funds must reach their super accounts before 30 June.
Bring forward your tax deduction to 2018.
Pay directors a bonusHave a company which has made a profitDeclare a Director’s bonus before 30 June and pay it after 1 July 2018.
Defer paying income on your company profits.
Prepare PAYG Payment SummariesEmploy staff Ensure your payment summaries are prepared and provided to staff by 14 July 2018.
Assist your staff in their tax preparation
Ensure you are not penalised for late lodgement.
Get ready for Single Touch Payroll (STP)Employ more than 20 employees Ensure that your software is STP ready – as from 1 July it will be compulsory to report via STP.
Report tax and super information to the ATO each time you complete a pay run.
Taxable Payments Annual ReportOperate in the Building and Construction, Cleaning or Courier industries and make payments to contractors.Ensure that you have completed and lodged your report prior to 28 August 2018.
Ensure you are not penalised for late lodgement.
Prepare some estimatesHave business or investment income and your income varies from year to year.Contact our office before 30 June so that interim estimates can be prepared for the 2018 financial year before it ends.
Take any actions necessary to increase or decrease your income where possible to minimise tax payable.
Ensure you know what your tax position is so that the correct amount of tax is set aside
Vary your June 2018 PAYG instalment to help cashflow if profit is down.
Prepay expensesOperate a “Small Business” (turnover less than $10M)Prepay expenses for up to 12 months.
Bring forward your tax deduction to 2018.
Trustee’s distribute
income
Operate your business or own investments in a trust Keep an eye out for your end of year distribution resolution that will be sent to you in the next few weeks.
Ensure profits are distributed in the most tax effective manner.
Meet the ATO’s requirements that this resolution be made prior to 30 June.
Update your assetsHave depreciating assets not in an asset pool Check the list of assets provided with last year’s financial statements and advise of any items that have been destroyed or sold.Claim a tax deduction for the balance of the asset value this year.
Write off bad debtsHave debtors who have not paid their accounts, have been chased and are not likely to pay. Write off the debt in your books prior to 30 June 2018.
Claim a tax deduction for the bad debt this year.

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Bentleys (QLD) Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate processional advise based on their own personal circumstances. This information is focussed on the taxation aspects of asset sales and not a recommendation to either retain or sell assets. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.

 

Individual

 If you...You may want to So you can
Gain from a capital loss Realised a capital gain from an investmentTrigger a capital loss by selling a poorly performing investment that no longer suits your circumstances.
Use the capital loss to offset your capital gain and save tax.

Free up money for more suitable investment opportunities.
Defer asset sales Are thinking of selling a profitable asset this financial yearDefer the sale contract until after 30 June.
Defer paying Capital Gains Tax.

Possibly reduce your capital gains tax liability.
Prepay investment loans Have a geared asset such as a rental property or an investment portfolio Prepay 12 months interest on your investment loan.
Bring forward your tax deduction.
Private health insurance rebate Expect to earn over $90,000 (individuals) or $180,000 (families) Check what rebate you are receiving from your private health fund.
Make sure you don’t get a surprise bill when your tax is prepared.
Pay for insurance and avoid paying a surcharge Expect to earn over $90,000 (individuals) or $180,000 (families) Take out an eligible private hospital insurance policy. Save paying the Medicare Levy Surcharge of between 1% to 1.5% of your income in the future financial years.
Start a new log book Use a vehicle for work purposes Commence maintaining a log book before 30 June.Maximise the amount you can claim for the business use of your vehicle.
Read your odometer Use a vehicle for work purposes and claim using the log book method.Ensure you take the odometer reading on 30 June .
Continue to use the log book method to claim the business use of your vehicle.
Obtain a Depreciation Report Own a rental property Contact a quantity surveyor and obtain a depreciation report if you don’t already have one.
Claim for the decline in value of the assets in the rental property, and the building itself.
NB: Depending on the age of the property and when it was purchased. Legislation around depreciation recently changed, so please speak with your accountant about your personal situation.
Donate Are considering make a donationMake the donation before 30 June.Bring forward the deduction to 2018.

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Bentleys (QLD) Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate processional advise based on their own personal circumstances. This information is focussed on the taxation aspects of asset sales and not a recommendation to either retain or sell assets. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.

SMSF

If you have... We require...What you need to do...
A TERM DEPOSIT that has a maturity date after 30 June 2018.Documented evidence of having the term deposit in place as at 30 June 2018.If your term deposit matures PRIOR to us receiving your work:
Please provide us with your reinvestment or redemption notice.

If your term deposit is due to mature AFTER you have given us your work:
Please contact your bank and request a statement showing that the term deposit was in place as at 30 June 2018.
Taken a PENSION from your SMSFCheck to ensure that you have taken your minimum pension as advised to you in previous correspondence.

Check whether you have made any additional contributions to your SMSF prior to 31 May 2018
Review your bank statements to confirm how much you have drawn as a Pension payment.
If you have contributed additional money to your SMSF and haven’t advised us, please do so now. We need to ensure your minimum pension has been calculated on the total balance of your fund (including contributions made during the year).
Planned to make a CONTRIBUTION to superannuation this year.The contribution must be in your SMSF bank account prior to close of business 30 June 2018.Ensure that your contribution is within the relevant limits. If you are unsure about what these are, please contact our office prior to making the contribution.
BANK AND BROKER ACCOUNTSSet up direct data feeds into our processing software.We are in the process of changing our SMSF processing software and will need to set up your bank and broker direct data feeds again. If you receive an authorisation form, please sign and return to our office. Note that this does not give us any access to transact in your accounts – it is merely a data feed of transactions imported into our software.
Over $1M in super and take a PENSIONTo report to the ATO in accordance with the new Transfer Balance Cap rules quarterly.Read the enclosed fact sheet on Transfer Balance Caps and contact us during the year as detailed in the fact sheet.
DIRECT SHAREHOLDINGSConfirmation of shareholdings held within your SMSF as at CLOSE OF TRADE 30 June 2018

(Please note: confirmations must contain the Registry details on the document. Reports printed from your own bookkeeping file eg. MYOB is  not sufficient for Audit purposes).
If you have a Stockbroker:
Request a copy of your Investment Summary Report. This report should detail your fund’s CHESS sponsored holdings and their market value as at close of trade 30 June 2018.

If you have an online broking account eg. Commsec, nabtrade, E-trade:
Log on to your account and download a copy of your Investment Summary Report. This report should detail your fund’s CHESS sponsored holdings and their market value as at close of trade 30 June 2018.

If your shares are issuer sponsored and held through a Registry:
Log on to your relevant Registry and print a Holding Summary (see below for instructions)
If you have previously registered, print a Holding Summary.

If you have NOT registered, go to the Investor Centre, and follow the steps to register. NOW is the time to arrange your Member login and review your Portfolio. Once registered, at 30 June print a Holding Summary.

The following shows the path to the different organisations:

Computershare - https://www.computershare.com/au
Click the ‘Log in’ button and select “Investor Centre” – this will open a new window.
Select “Existing User” and you will be directed to a new page to enter your log-in details.

Link Market Services - www.linkmarketservices.com.au
Click on “Investor Login” section – this will open a new window. Enter your log-in details.

Boardroom Limited - www.boardroomlimited.com.au
Click the Login button in the “InvestorServe” box (bottom left hand corner of the screen) – this will open a new window. Enter your log-in details.

The following information is provided as an information service only and, therefore, does not constitute financial product advice and should not be relied upon as financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision.

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Bentleys (QLD) Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate processional advise based on their own personal circumstances. This information is focussed on the taxation aspects of asset sales and not a recommendation to either retain or sell assets. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.

Super

 If you...You may want to...So you can...
Make tax deductible super contributionsAre under 75 years of age and want to increase your superannuation balanceInvest in super and claim your contribution as a tax deduction.

(but beware of limits and other conditions that may apply)
Use the deduction to offset taxable income and save on tax.
Get a super top up from the GovernmentEarn less than $51,813, of which at least 10% is from employment or businessMake a personal after-tax super contribution for you or your children.
Qualify for a government co-contribution of up to $500.
Increase your retirement savings.
Boost your partners super and reduce your taxHave a spouse who earns less than $37,000 per annumMake an after-tax super contribution on their behalf.Receive an offset of up to $540.
Increase your partners retirement savings.
Use super to manage Capital Gains TaxUse super to manage Capital Gains TaxInvest some of the sale proceeds in super and claim a tax deduction for the contributionUse the deduction to offset your taxable gain and save on tax
Increase your retirement savings
Minimise your SMSF
Admin costs
Have a Self Managed Super Fund?Keep an eye out for your end of year SMSF Checklist that will be sent to you in the next few weeksEnsure your fund remains complying by paying minimum pensions, downloading asset confirmation documents etc.

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Bentleys (QLD) Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate processional advise based on their own personal circumstances. This information is focussed on the taxation aspects of asset sales and not a recommendation to either retain or sell assets. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.

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