Review Plan Reframe Revitalise
• May 2017 monthly activity statements due for payment and lodgement
• Superannuation Guarantee payments must be RECEIVED by funds institutions by this date to qualify as a tax deduction for 2016/2017 tax year.
• Trust Resolutions re beneficiaries
• Company resolution for directors fees that are definitely committed
• Changes in superannuation – the most in a long time – contribution caps reduced by up to $10,000
• ATO will now report debts to CRA
ATO Debt Alert:
The ATO is currently owed over 12 Billion dollars by small business with turnovers under $2million.
• From the first of July any business with an ABN and tax debts of more than $10,000 over 90 days old & not in a formal arrangement with the ATO will be reported to Credit Reference Authorities.
• This will affect your credit standing with banks and other lenders.
• If you are in that position we recommend you immediately set up a payment arrangement with the ATO or see your tax advisor for assistance.
They will consider waiving late interest or penalties where you have mitigating reasons.
Year End Tax Planning
Never spend purely for a tax deduction.
The expenditure must be worthwhile to your business and contribute to the earning of income or building useful assets. For example if you run your business through a company you would be wasting a dollar to get back 28.5 cents (27.5% when legislation passed for 2017).
However consider the following tips:
• Write off Bad debts
• Write off old or obsolete stock
• Prepay expenses, interest or leased items up to 12 months
• Up to $20,000 asset deduction
• Staff deductions incurred but not paid before June 30
• Take up Losses on sales or scrapping of used/old assets
• Defer income till July 2017
• Borrow to increase concessional super contributions before June 30 – big changes in July 2017
• Review your PAYG income tax instalments if expected profit lower than last year
• Small business CGT concessions
• Complying personal company loans/ deemed dividends
• 100% deduction for buying art
This has become a complicated area as many businesses are unaware of the far reaching grouping provisions of the Act and more importantly when payments to contractors are caught by the Legislation.
If you have any queries regarding the above matters please do not hesitate calling myself, Andre Christian, Accredited Superfund Auditor or either of my partners:
• Jennifer Chen: Tax Partner or
• Richard Wakefield: Financial Planning Partner
• On (02) 9829 3111 For a free consultation