Other Tax Effective Strategies For Businesses

BUSINESSES SHOULD ALSO CONSIDER THE FOLLOWING ITEMS

• Stock Valuation Options - Review your Stock on Hand and Work in Progress listings before June 30 to ensure that it is valued at the lower of Cost or Net Realisable Value. Any stock that is carried at a value higher than you could realise on sale (after all costs associated with the sale) should be written down to that Net Realisable Value in your stock records.
• Compulsory Superannuation Guarantee – as mentioned in Tax Minimisation Strategies, if you want a tax deduction in the 2023/24  financial year, the superannuation fund must receive the funds by 30 June 2024. The Tax Office doesn’t consider a contribution to be made until the amount is actually credited to a super fund’s bank account so an electronic transfer to another bank account on June 30 is not necessarily considered paid. We strongly recommend you make the payment a week or so before June 30 and then follow up with the super fund to ensure the funds have been received. Don’t risk the tax deductibility of what can often be a significant amount by leaving payment to the last minute.
• Write-Off Bad Debts – if you operate on an accruals basis of accounting (as distinct from a cash basis) you should write off bad debts from your debtors listing before June 30. A bad debt is an amount that is owed to you that you consider is uncollectable or not economically feasible to pursue collection. Unless these debts are physically recorded as a ‘bad debt’ in your system before 30th June 2024, a deduction will not be allowable in the current financial year.
• Repairs and Maintenance Costs  – Where possible and cash flow allows, consider bringing these repairs forward to before June 30. If you don’t understand the distinction between a repair and a capital improvement please consult with us because some capital improvements may not be tax deductible in the current year and could be claimable over a number of years as depreciation.
• Obsolete Plant and Equipment - should be scrapped or decommissioned prior to June 30, 2024 to enable the book value to be claimed as a tax deduction.
• Also see Small Business Write-Off for Individual Assets
• Also see Company Loss Carry Back Off-Set from our Budget 2021-22 Round Up
• Use of a Bucket Company to receive distributions from your Discretionary Trust 

Other 2024 Year End Tax Planning Opportunities

• Back to the overview of the 2024 Year End Tax Planning Guide
• Round Up of Other Year End Tax Issues
• Immediate Write-Off For Individual Small Business Assets & Temporary Full Expensing
• Key Tax Minimisation Strategies
• Superannuation Tax Planning Opportunities

Disclaimer: This newsletter contains general information only and no responsibility can be accepted for errors, omissions or possible misleading statements. It is not designed to be a substitute for professional advice and does not take into account your individual circumstances. Therefore, no responsibility can be accepted for any action taken as a result of any information contained in this newsletter.