Tax Planning 2020 Year End

Business

• Potential instant asset write off for purchases up to $150,000
  This has been extended to 31 December 2020
• Small businesses can prepay expenses up to a year in advance
• Superannuation contributions for staff made prior to 30 June are deductible in this financial year. To make these contributions deductible the payment needs to be made before 30 June
• Check your stock for any obsolete items
• Check your debtors for any debts that may have gone bad
• Make sure all your creditors are recorded at 30 June
• Don’t forget to make your Jobkeeper claims every month until September

Individuals

• COVID 19 has allowed you to claim more for home office expenses, but make sure you keep records
• Prepaying interest on investment loans will bring forward your tax deduction
• Personal superannuation contributions prior to 30 Jun 2020

Superannuation

• Superannuation Contribution caps:
  • Concessional (Employer/Member) $25,000
  • Non-Concessional $100,000
• Review ability to make other types of contributions
• Minimum pensions withdrawals to be made prior to 30 June 2020. Please note there is a temporary halving of the annual minimum pension requirement for 2020.
• Investment strategy has been reviewed to ensure it’s appropriate given market fluctuations from COVID
• Ensure In-House Assets remain under 5% of the total Fund assets
• Assets revalued at 30 June 2020 for the preparation of the financial statements

“It’s critical for superfund members to ensure they review their tax planning opportunities prior to 30 June to maximise their tax savings and maintain their fund’s complying status.”

– Daniel Shaw
Principal and Superannuation Specialist