Life Interests Testamentary Trusts

2022 END OF FINANCIAL YEAR TAX PLANNING

With 30 June 2022 approaching, individuals and small businesses should be giving some consideration to year-end tax planning strategies, including:

Instant Asset Write Off (Temporary Full Expensing) Rules: eligible businesses can claim an immediate deduction for business portion of the cost of an asset in the year it is first used or installed ready for use. This has been extended to 30 June 2023.

Write Off Bad Debts: if you have debtors, that have been previously recognised as income, that you now know are not collectible, writing them off will enable a deduction to be recognised.

Consider Pre-Paying Expenses: if cashflow allows, prepaying some expenses like rent, insurance and office supplies for a period of up to twelve months provides an immediate deduction.

Review Inventory: a physical stocktake should be conducted to quantify and value inventory. Slow moving, damaged and obsolete stock must be written off prior to 30 June to claim a tax deduction.

Pay Employee Superannuation: Super Guarantee Charge (SGC) for employees must be paid before 30 June 2022 to receive a tax deduction for the business in the 2022 year.

Personal Superannuation Contributions: individuals may be able to claim a tax deduction for contributions made to your super fund from your after-tax income. The concessional contributions cap for the 2022 financial year is $27,500.

 

The content within these articles was correct at the time of writing. Please contact us for updated information and advice. 

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.

blog archive

Recent Posts

MORE INTERESTING

BLOGS

The main residence exemption is fairly well known, that is, capital gains tax (CGT) on your family home is generally exempt. However, if your…
The inheritance of a property can be complex. What to do with the property and how that will be treated for income tax purposes…