With 30 June fast approaching there are a number of things to think about? Speak to your tax accountant for the details
1) We should not spend money just because we get a tax deduction.
2) The very generous instant asset write off for small business is being reduced after 30 June 2023.
3) Superannuation salary sacrificing and employer contributions are taxed concessionally at 15% as they enter the Superfund but give a full
deduction at the taxpayers marginal tax rate. As this is quite a good tax advantage there are limits to how much a taxpayer can contribute
this way. The combined salary sacrifice and employer (concessional) contributions are capped at $27,500 per year. If the taxpayer has
not been using the full amount of their deduction some of this is carried forward. This carried forward amount can be located
under myGov in the Australian Taxation portal where the taxpayers individual carried forward amount is shown.
4) Donations are a good way of helping others and getting a tax deduction.
Happy End of Financial Year
Superannuation Payable by end of June
Superannuation - Claiming the Tax Deduction
An employer , if intending to claim a tax deduction for Super payments , be aware that these payments are considered to be paid (and
therefore tax deductible in the current year) once they have been processed and received by the employee's Super funds An employer meets its Superannuation Guarantee obligations when the Super is paid by 28 July 2025.
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Interest on ATO Debt will not be tax deductible
The Government has announced that GIC (interest on ATO debt) which is currently 11.17% will no longer be tax deductible from 1 July 2025 which means the true cost to the business is even higher. The ATO historically might have cancelled the interest upon request but now because of the high levels of ATO debt they are becoming less likely to do so. https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/deny-deductions-for-ato-interest-charges Read More…
All estimated 2.5 M Directors in Australia from November 2021 will need to verify their identity as part of a new director identification number (Director ID) regime. The Director ID will be a unique identifier that a director will apply for once and will keep forever. Read More…