FY2021 | Year End Tax Alert

It’s time for individuals and businesses, to start tax planning for the end of the financial year.

We can work together to help you get on track before 30 June 2021.

Individuals

  • Superannuation Contributions – consider contributing voluntary after tax contributions to your superannuation account.  You may be eligible to claim a tax deduction and reduce your income tax amount.
  • Keep a motor vehicle logbook – if you use your motor vehicle extensively for business purposes, record details and an accurate reading of your trips for at least a 12-week period to better substantiate a deduction on your income tax return.
  • Property Depreciation Report – if you have a rental property, a property depreciation report is invaluable for claiming depreciation and capital works deductions on capital items.
  • Bring forward work or business-related purchases – also note the currently available immediate deduction and full expensing ATO depreciation rules.

Business

  • Debtors – if you are carrying bad debts, review them.  If they’re irrecoverable, write off bad debts before 30 June so as to claim them as a deduction.
  • Superannuation Contributions – must be physically received by a super fund before 30 June to claim in the current tax year.
  • Business assets write-off – the rules have changed several times recently with the current rule in place since 7 October 2020 until 30 June 2022, which allows for the temporary full expensing as follows:

– the business portion of the cost of new eligible depreciating assets for most businesses

– the balance of a small business pool at June 2021 and June 2022 for business with an aggregated turnover under $10 million.

  • Unearned income – if you have invoiced for your services, but not yet completed that work at 30 June, please let us know the amount of your invoices where the work has not yet been completed, as this portion of income can be allocated as being earned in the next 2022 financial year, once earned.

For expert tax planning advice that is tailored to your individual situation, contact our office on 02 9560 2688.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

Phone: Leichhardt (02) 9560 2688  City (02) 9019 1811
Fax: (02) 9560 2844

Mail: PO Box 480, Leichhardt, NSW 2040

City: Level 8, 99 Elizabeth St Sydney

Leichhardt: Suite 53, Level 1, The Italian Forum, 23 Norton St, Leichhardt, NSW 2040

Website: http://www.hanrahans.com.au

 

Confidentiality and Privilege Notice
The contents of this e-mail and any attachment(s) transmitted with it are confidential and intended solely to be read and retained or used by the recipient named above. Unless you are the recipient (or authorised on behalf of the recipient) you are not permitted to read, copy, use or distribute this information. If you have received this e-mail in error, please delete it and notify the sender immediately by e-mail, telephone [+61-2-9560-2688] or fax [+61-2-9560-2844].

Liability limited by a scheme approved under Professional Standards Legislation.

Want to grow your business? Our Free Resources will Help