Preparing For The Financial Year End
Effective planning and preparation is critical for all taxpayers as the end of financial year approaches.
This is the perfect time of the year to seek advice from your accountant to maximise your tax savings for 2018-19 and start planning fresh for next year.
Single Touch Payroll (STP) is changing the way employers report their workers’ tax and super information to the ATO.Parliament has passed legislation to extend STP to now include businesses of any size. There are separate guidelines and due dates in place for different sized businesses.
Businesses with 20 or more employees:As STP for businesses with 20 or more employees started on 1 July 2018, relevant businesses should already be reporting through STP or have applied for a deferral.
Businesses with 5-19 employees:Reporting can start anytime from 1 July to 30 September 2019. If you already use payroll software which offers STP, you can update your product and start reporting early.
Businesses with 1-4 employees:Micro employers with four or less employees who don’t currently use payroll software can report STP information in other ways. The ATO has listed software developers who offer no-cost and low-cost STP solutions to make the transition smoother.
The Instant Asset Write-Off Scheme has been extended to 30 June 2020 for assets purchased under $30,000.The scheme affects small to medium businesses with a turnover of up to $50 million a year, allowing business owners to immediately deduct assets costing up to $30,000 which can then be claimed for tax return in that income year. The new rules will apply from 2 April 2019 and are set to remain in place until 30 June 2020.
Staying on top of record-keeping all year round can save time, reduce stress for small business owners and help to maximise your tax return.Essential business records that must be kept include:
- Year-end records
- Income and sales records
- Bank records
- Fuel tax credits
- Payments to employees and contractors