Tax Planning Season

With 30th June 2024 is very fast approaching, Fenwick Collective will not gatekeep any tax saving tips and strategies this tax planning season!

Our team have prepared a cheat sheet for you:

• Small business - Income

  - Delay/defer invoicing of income until 1st July 2024

  - Consider the timing of income sources which are taxable in light of the reduced tax rates for individuals from 1st July 2024 - essentially, you may pay less tax by having this reported in the 2025 FY as opposed to the 2024 FY, for example delay/defer the sale of CGT assets to after 30 June (remember this is per contract dates)

  - Make note of the value of your stock on hand at 30 June

  - Write off any bad debts

• Small business - Expense

  - Bring forward or pre-pay for any deductions you were planning to incur in the months following 30 June 2024

  - Consider if wages or a contractor fee will need to be paid to a spouse (or related party) for administration work they have been supporting you with throughout the financial year. (For example, Amy runs a digital marketing agency and has her spouse Sam help with her bookkeeping in Xero. Amy pays Sam on a contractor basis for the hours he helped with in the 2024 FY. This is a tax deductible expense to Amy and is income to Sam.)

  - Purchase any business assets valued below $20,000 (excluding GST) prior to 30 June 2024 to be able to claim the full cost of the asset in the 2024 financial year

  - Consider contributing to a charity that is close to your heart before EOFY

  - Consider an electric vehicle to receive extra tax incentives such as FBT exemptions

  - If you're using your car for business keep that logbook!

• Small business - General

  - Consider a restructure (e.g. are you a sole trader with increasing profits, now is the time to ask the question about what a company would mean tax wise for your business)

• Small business with staff

  - Pre-pay superannuation for the June quarter

  - Organise staff bonuses to be processed prior to 30 June 2024

  - Consider the supercharged skills and training tax deductions scheme - where you pay for external training courses provided to employees you can claim 120% of the cost, e.g. spend $100 and get a $120 tax deduction

  - Update budget/cashflow considerations from 1st July 2024 for the increase of superannuation guarantee rate to 11.5% (was 11%)

• Superannuation

  - Make voluntary superannuation contributions (but make sure you do this before the deadline of 15 June 2024) and consider the carry-forward amounts from prior years

This is a starting point for some basic tax planning strategies you may use. There are a whole host of options specific to your unique circumstance - and that's where our team is here to help!

We have opened our calendars for April, May and June for clients to book in and offering the below option depending on your budget & requirement: 

• BRONZE - Tax plan report with email commentary and advice 

• SILVER - Tax plan report with 45 minute consult 

• GOLD - Tax plan report, a 12-month budget/cashflow forecast for the 2025 financial year with a 60 minute consult 

Request a quote below:

Not sure if our tax planning services are quite right for you but still have questions about getting ready for the new financial year (think new staff member, using Xero, understanding your weekly tax savings requirements) then please still reach out to our team hello@fenwickcollective.com.au or 07 5630 1586.

*General advice only. May not be suitable for your specific circumstance. Reach out to your trusted accountant for more information.