The end of the financial year is fast approaching and now is the time to encourage clients to start thinking about the key decisions to be made before 30 June.
We caught up with our Tax Specialist’s to find out the main areas which may affect your clients:
- For rental property owners, this year’s tax return is the first one where the new travel deduction restriction rules and depreciation changes apply. Care should be taken here.
- Remember that the major superannuation changes like $1.6m cap, lower contributions caps – all apply from 1 July 2017.
- To qualify for deductions in the 2018 income tax year, taxpayers may bring forward up-coming expenses (i.e. incur the expenses before 30 June 2018) or small businesses and individual non-business taxpayers may prepay expenses (eg office supplies) up to 12 months ahead.
- Remember that work-related expenses are high on the ATO watchlist this tax time.
- Don’t forget the tax concessions available to SMEs (turnover less than $10 million) eg $20,000 instant asset write-off; simplified depreciation rules; small business restructure rollover; immediate deduction for certain prepaid expenses; simplified trading stock rules.
- Be aware of tricks and traps in claiming the small business CGT concessions.
- Beware of private company loans and unpaid trust distributions.
- Don’t forget to be ready for Single Touch Payroll from 1 July 2018 (for employers with 20 or more employees).
For more details on the above, see our Checkpoint Weekly Tax Bulletin EOFY special edition (Issue 24).