Last Minute 2024 End Of Financial Year Tax Planning Tips
With yet another financial year about to end, it’s time to start getting everything in order for the 2024 End Of Financial Year. It’s easy to push your EOFY tax planning duties aside, but you don’t want to miss the opportunities that EOFY tax planning can present in terms of tax deductions.
There’s still plenty of time to take advantage of EOFY tax planning on the Gold Coast, and with accountants like Grow Advisory Group on your side, there are massive tax savings to avail.
Continue reading to discover our top tax planning tips for the 2024 End Of Financial Year.
Write off Bad Debts
Businesses can reduce their tax bill by claiming a tax deduction for bad debts and claiming a GST repayment. However, you must write off the bad debt amount before the end of the Financial Year to claim it as a deduction.
To claim a bad debt deduction, you must be able to provide evidence that the bad debt is irrecoverable and that it was included in assessable income. You will also need to keep evidence proving your actions to recover the debt.
Keep Up To Date Records
Keeping your financial records up to date is an essential tip for tax planning. Your records should contain all data, including invoices, expenses and deductions, assets, and bank statements.
If you haven’t already started to do so, you won’t want to leave this much longer. You have approx till the end of October to finalise your records for your accountant.
Know what deductions you can claim
While the accountants at Grow Advisory Group are up to date with 2024 End Of Financial Year’s tax deductions, they can only include relevant deductions if you have evidence to support such deductions. Thus, you need to be aware of what you can claim and keep receipts for all claimable deductions.
MYOB has a great article titled ‘18 commonly overlooked ATO tax deductions and more’, worth checking out, as too is our own article, ‘How to Get the Biggest Tax Return Possible’.
Utilise the Instant Asset Write-Off
The instant asset write-off concession allows small businesses with an aggregated turnover of less than $500m to claim an immediate deduction for assets less than $150,000.
This concession is valid for new and second-hand assets and can be used for more than one asset.
You can find out more about this on the ATO website.
Bring forward Expenses/Spending
If you have expenses due in July or August, an excellent strategy to lower this year’s taxes is to bring forward payment to this Financial Year. By pre-paying costs and paying before 30 June 2024, you will reduce your taxable income.
Likewise, if your business needs new equipment or vehicles, purchase them this month or next, before 30 June 2024, so you can claim deductions this Financial Year.
Defer Income
As per above, by delaying large invoices till 1 July 2024, you will reduce your 2024 taxable income. If you’re on accruals for accounting, you can then delay paying tax on that invoice till the 2024 End of the Financial Year.
Conclusion
With 30 June 2024 fast approaching, there’s no time to waste preparing for the 2024 End Of Financial Year Tax. Now’s the time to be planning to reduce your taxable income and avail of any concession you may be eligible for.
While the highly experienced team of tax accountants at Grow Advisory Group will utilise their knowledge to reduce your taxable income as much as possible, there are messages you can take to help increase your tax return.
The best tax planning tips we can offer for the 2024 End Of Financial Year are to write off bad debts, keep up-to-date records, know what deductions you can claim, utilise the instant asset write-off, bring forward expenses and spending, and defer income where possible.
To get the biggest possible tax return, turn to the Gold Coast’s tax return experts at Grow Advisory Group.
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Disclaimer: The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from an accountant and/or financial adviser.
