2019 EOFY tax planning checklist

Note that this year, 30 June falls on a Sunday, so you will need to have your strategies in place by Friday 28 June. And remember also to get your superannuation EOFY-ready for a stronger financial future.

Business

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	If you…….	You may want to	So you can
Count your stock	Have a business that holds stock	Ensure 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 stock	Have 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 super	Employ staff	Pay their April – June super before 30 June 2020. The funds must reach their super accounts before 30 June 2020	Bring forward your tax deduction to 2020
Single Touch Payroll (STP)	Employ staff	Perform the End of year finalisation of your payroll in your STP software. Advise employees their income details are on myGov	Ensure you are not penalised for late lodgement Advise employees that they can complete their tax returns
Taxable Payments Annual Report	Operate in one of the following industries: • Building & construction • Cleaning services • Courier services • Road freight services • IT services • Security, investigation or surveillance services AND make payments to contractors	Ensure that you have completed and lodged your report prior to 28 August 2020	Ensure you are not penalised for late lodgement
Instant asset write-off	Operate a “small business” (turnover less than $500M)	Claim a deduction for the business portion of each asset (new or second hand) purchased and first used or installed ready for use, up to the following thresholds: Turnover less than $50M • $30,000, from 7.30pm (AEDT) on 2 April 2019 until 12 March 2020 Turnover less than $500M • $150,000 and first used or installed ready for use from 12 March until 30 June 2020	Continue to expand and improve your business with new or second hand assets
Prepare some estimates	Have business or investment income income varied from last year. Have your children or other beneficiaries turned 18 or had a significant change in income since last year	Contact our office before 30 June 2020 so that interim estimates can be prepared for the 2020 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 2020 PAYG instalment to help cashflow if profit is down
Prepay expenses	Operate a “Small Business” (turnover less than $10M)	Prepay expenses for up to 12 months	Bring forward your tax deduction to 2020
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 2020
Update your assets	Have 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 debts	Have 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 2020	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 strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based on their own personal circumstances.

Individual

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	If you...	You may want to	So you can
Gain from a capital loss	Realised a capital gain from an investment	Trigger 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 year	Defer 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 donation	Make the donation before 30 June	Bring forward the deduction to 2020

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter.  Bentleys strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based on their own personal circumstances.

SMSF

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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 2019	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 2019
Taken a PENSION from your SMSF	Check 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 2019	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 2019	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.
DIRECT SHAREHOLDINGS	Confirmation of shareholdings held within your SMSF as at CLOSE OF TRADE 30 June 2019 (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 2019. 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 2019. 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.

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter.  Bentleys strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based on their own personal circumstances.

Superannuation

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	If you...	You may want to...	So you can...
Make tax deductible super contributions	Are under 75 years of age and want to increase your superannuation balance	Invest 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 Government	Earn less than $51,813, of which at least 10% is from employment or business and have less than $1.6M in super and have not exceeded the non-concessional cap	Make 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 tax	Have a spouse who earns less than $37,000 per annum	Make 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 Tax	Manage a capital gain on the sale of an asset	Invest some of the sale proceeds in super and claim a tax deduction for the contribution	Use 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?	Check our end of year SMSF Checklist	Ensure 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 strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based on their own personal circumstances.

Need help?

If you need assistance with any aspect of your end of year planning, contact the Bentleys team. Find your local office.

 

General Advice Warning: This article has been prepared for the purpose of providing general information, without taking into account any particular investor’s individual objectives, financial situation or needs. You should therefore, before making any personal decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to your own objectives, financial situation and needs. We would be only too pleased to help if we can.