As the end of the 2024 financial year approaches, now is the time to ensure you have all your documentation in order and that you have taken advantage of any deductions that may be applicable before 30 June 2024.
Some things to consider are:
- Work related deductions that have been incurred during the year are supported by the relevant receipt
- Have you maintained records to ensure you can claim a work from home deduction if applicable
- A log book has been maintained for a minimum 12 consecutive weeks to evidence a work related motor vehicle claim (Note: download the Accru App to access a log book)
- Do you have self education expenses that relate to your employment that haven’t been paid for by your employer
- Consider making a tax deductible donation to a registered charity
- Do you have income protection insurance that you pay for personally as this can generally be claimed as a tax deduction
Investment properties:
- Ensure expenses are supported by the relevant receipt
- Consider obtaining a Quantity Surveyor report in order to increase the capital allowances and capital works to be claimed
- If selling a property, consider the contract date as this is the trigger point for capital gains tax purposes. If you are signing a contract in June 2024, it may be beneficial to hold off signing the contract until 1 July 2024 as this will mean the capital gain is recorded in the 2025 tax year instead of the 2024 tax year, thereby delaying any applicable tax payable on the gain for 12 months.
Superannuation:
- Consider making a top up personal contribution to maximise the $27,500 concessional limit for the year and claim the top up amount as a personal tax deduction
- Are you able to make additional deductible superannuation contributions above the $27,500 annual limit using unused carry forward concessional contributions. Eligibility requirements apply, such as your total superannuation balance must be under $500,000. If applicable this may be a consideration especially in a year that you have increased taxable income due to the sale of a capital asset and therefore additional cash is also available.
- Note: all superannuation contributions must be cleared funds in your superannuation fund by 30 June 2024 in order to claim the tax deduction in the 2024 year.
Additional considerations for businesses:
- Ensure your Single Touch Payroll processing is finalised by 14 July 2024
- Pay your April – June 2024 employee superannuation by mid June 2024 if you wish to claim a tax deduction in the 2024 year
- Review your stock obsolescence and make any necessary adjustments
- Review your accounts receivable to determine if any should be written off as bad debts
- Consider prepaying expenses if you satisfy the eligibility requirements to do so
- Ensure your accounting system is fully coded and the applicable receipts are included. An online accounting system such as Xero is ideal for this and would suit most small business needs. It also enables you to upload and attach receipts and other documentation directly to the applicable transaction. This saves time at year end by not requiring you to compile and store your paper documents.
Speak to your Accru advisor to discuss your specific needs as the end of the financial year approaches to ensure you have maximised your deductions and have the correct documentation in place.
