Get Ready for Tax Time: Your EOFY Checklist
As the end of the financial year approaches, it’s essential to ensure you’re well-prepared to maximise your tax position. At Tanti Financial Services, Penrith’s trusted tax accountants with over 30 years of experience, we help individuals and businesses navigate EOFY tax planning with clarity and confidence. That’s why our collaborative team has put together this handy checklist and tax tips to help small and medium business owners, as well as employees, navigate the tax season with confidence.
Review Your Business Structure Before EOFY
Before the financial year ends, take a moment to consider whether your current business structure still serves your needs effectively. Have your commercial risks increased, warranting a corporate or trust structure for enhanced protection? Have your family circumstances changed, necessitating a review of your structure? Our knowledgeable team can guide you through the available options and help you make an informed decision.
Maximise EOFY Tax Deductions Before 30 June
Take advantage of deductions that can reduce your taxable income before the financial year ends. Common EOFY strategies include:
- Writing off bad debts that are no longer recoverable
- Finalising director fees and employee bonuses
- Bringing forward planned charitable donations
- Prepaying interest on income-producing loans
- Claiming repairs, consumables, and operating expenses
- Reviewing trading stock and writing off obsolete items
- Utilising available instant asset write-off opportunities (where eligible)
Capital Gains Tax Planning Strategies at EOFY
If you’ve sold assets during the financial year, be mindful of the capital gains tax implications. Consider realising capital losses to offset current-year capital gains before the end of the financial year. Alternatively, subject to your broader financial considerations, you may wish to defer capital gains until the next financial year to take advantage of potentially lower personal tax rates.
Work-Related Expenses You May Be Able to Claim
For employees, don’t forget to claim your work-related expenses. This can include items such as home office expenses, professional development courses, and tools or equipment required for your job. Keep accurate records and receipts to substantiate your claims.
EOFY Superannuation Strategies to Reduce Tax
Superannuation is an essential aspect of your tax planning. Consider making additional contributions to your super fund before the end of the financial year to potentially reduce your taxable income. Be sure to stay within the contribution caps and be aware of any age-related restrictions.
Common EOFY Tax Mistakes to Avoid
Many businesses and individuals make common mistakes when it comes to tax planning and compliance. Here are a few pitfalls to watch out for:
- Failing to keep accurate and up-to-date records
- Missing out on claimable deductions and expenses
- Not understanding your tax obligations and deadlines
- Incorrectly classifying employees and contractors
- Neglecting to plan for and manage cash flow
By being aware of these common errors and taking proactive steps to avoid them, you can minimise your tax liabilities and reduce the risk of audit or penalties.
Why Year-Round Tax Planning Matters
The Benefits of Ongoing Tax Planning
While the end of the financial year is a crucial time for tax planning, it’s important to remember that effective tax management is a year-round process. Engaging with a trusted tax advisor throughout the year can help you:
- Stay informed about changes to tax legislation and how they impact you
- Make strategic business decisions with tax implications in mind
- Identify opportunities for tax savings and efficiency
- Ensure compliance with all tax obligations and deadlines
- Plan for and manage cash flow more effectively
Maintain Accurate Financial Records for Stress-Free Tax Compliance
Maintaining accurate and up-to-date records is crucial for stress-free tax planning. Ensure you have all necessary documentation, such as invoices, receipts, and bank statements, readily available. Consider using accounting software like Xero to streamline your record-keeping and make tax time a breeze.
Get Expert Tax Advice from Experienced Penrith Accountants
Navigating the complexities of tax planning can be challenging, but you don’t have to do it alone. At Tanti Financial Services, our team of experienced tax accountants is here to provide you with personalised, professional advice. We’ll work closely with you to identify opportunities for tax savings and ensure you meet all your compliance obligations.
Streamline Your EOFY Tax Planning with Tanti Financial Services
By following this end-of-financial-year tax checklist and implementing our expert tips, you’ll be well on your way to maximising your tax savings. Remember, early planning and preparation are key to a successful tax season. Get personalised EOFY tax advice from experienced Penrith accountants. The team at Tanti Financial Services is here to help you minimise tax, stay compliant, and plan with confidence.