2024 Business Tax Tips
With the end of the tax year fast approaching, it is important that business owners take the time to do some tax planning now. Why, because after 30 June 2024, it will be too late and you may end up paying more tax than you need to.
Here are 8 business tax tips to legally minimise your 2024 tax position.
- You don’t want to pay tax on any income you have not yet earned. Therefore, you need to review your debtors and write off any debts you are not sure you will not collect on or before 30 June 2024. Don’t worry, you can still chase the debtor and if you manage to collect the cash after 30 June 2024, you can include that in next year’s tax return.
- If you have stock, make sure you do a stock take and assess the value of all your stock. If any stock is unsaleable for any reason, formally write this off on or before 30 June 2024. If the selling price of any stock is less than the cost, value the stock item at the selling price ex GST.
- Superannuation is only tax deductible when paid. If you pay the June quarter super on or before 30 June 2024 you can claim the deduction against your 2024 income.
- If you are the business owner, considering topping your superannuation contributions up to $27,500 for each individual.
- If you are going to pay your staff bonuses for the work they have done, consider paying these on or before 30 June 2024. You can then claim an immediate deduction. If you don’t have the cash to pay these before 30 June, consider doing all the necessary reviews and paperwork documenting and approving these bonuses before 30 June, and if done properly you may still be able to claim a deduction in the 2024 for these.
- Businesses with revenue under $50 million, can claim an immediate deduction for expenses paid up to 12 months in advance. For example, if the rent for July to September was paid in June, you can claim all of this in your 2024 income tax return.
- If your business has aggregated turnover of less than $10m, legislation is currently in front of parliament to allow you to immediately write off any individual asset of up to $20,000 in cost, as long as it is ready for use by 30 June 2024. This may be subject to a late change and increased to $30,000.
- Businesses with aggregated annual turnover of less than $50m may have access to a bonus 20 per cent tax deduction for the cost of eligible depreciating assets, that support energy saving upgrades and more efficient use of energy, which are first used or installed ready for use between 1 July 2023 and 30 June 2024. The deduction is capped at up to $100,000 of total expenditure on eligible assets. But this also has not passed parliament yet.
If your tax advisor is not being proactive with you about these business tax tips, and any tax tips around your personal situation, find yourself a new tax advisor.
Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. Wayne may also be able to assist you in preparing any grant application.
Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.
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Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052
