Tax Planning Strategies for 2021-2022 Financial year
By
R J Sanderson Pty Ltd
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You have Questions, We have Answers.
What financial opportunities may be available before and after 30 June? How do the financially successful prepare for the end of financial year?
As the end of another tax year rapidly approaches on 30 June, we’ve put together an End of Financial Year tax planning tips to help you maximise tax time benefits.
This should also be entered via payroll. SGC will also be payable on this additional amount
20. Director / Owner payments - Declare a Dividend
With franking credits before 30 June
21. Director / Owner payments - Progressive Changes to Company tax rate
22. Staff Payments - Accrue / Pay staff a bonus
In recognition of their efforts during the financial year. This should also be entered via payroll and paid prior to 30 June. SGC will also be payable on this additional amount
23. Staff Payments - Pay Q4’s SGC for employees
By 25 June 2022 for it to be received by superfunds before the 30 June cut off
24. Staff Payments - Staff recognition / gifts
Issue gift cards up to $299 in recognition for their efforts during the financial year
25. Asset Strategies -Purchase assets before financial year end
Tools, office furniture, cars, printers, etc. Using the instant asset write off, you can claim an unlimited deduction until 30 June 2023.
26. Asset Strategies - Instant asset write off for cars
Passenger vehicles with a payload capacity for under 1.0 tonne is limited to $59,136. Delivery of the car must be this financial year. If you spend more than the limit, the excess is not depreciated or claimed in any way.
27. Asset Strategies - Create a tax loss
Companies who paid tax in 2019 / 2020 – purchase eligible assets before financial year end to create a tax loss in 2021. Use the Loss Carry Back Rules to claim a refundable tax offset.
28. Asset Register Review - Carry out maintenance
Necessary repairs or maintenance to premises, business equipment or business vehicles.
29. Asset Register Review - Asset write off
If you have an asset or depreciation schedule, review the list and see which assets can be written off.
30. Asset Register Review - Temporary Full Expensing – For eligible businesses
New assets purchased between 6 October 2020 and June 2023 can be depreciated in full (no threshold limit). This means the balance of the small business pool can be expensed. This may create a loss in the business and Loss Carry Back Rules may be applicable.
Donate to charitable organisations with DGR (deductible gift recipient) status
33. Operational Strategies - Tax returns on an accrual basis
Allows deductions for expenses even though you are yet to pay for them. Make sure you account for them in your bookwork.
34. Operational Strategies - Prepay business expenses
Under the small business concession, claim an immediate deduction for prepaid business expenses where the payment covers a period of 12 months and ends in the 21/22 year.
35. Operational Strategies - Crystallise a capital loss
If you have already realised a capital gain during the year, consider crystallising a loss on other assets prior to the financial year end. Or defer the capital gains (the contract date is critical!)
36. Operational Strategies - Delay income
The company tax rate remains at 25% from 1 July.
37. Operational Strategies - Use a bucket company
If cash is available to transfer, distribution earnings out for later distribution. Or when the owner retire or reduces their working hours.
38. Operational Strategies - Make use of the Small Business Restructure Rollover (SBRR) Provisions
Consider any required restructuring to take advantage of the (SBRR).
