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Are you EOFY ready?

30 June is creeping up fast and we want to make sure you are prepared. 

We have highlighted some important tips and info below:

 

Individuals

 

Deductions

  • Home office expenses – if you have been working from home, you may have expenses you can claim at tax time. The ATO have extended the application of the shortcut method up until 30 June 2021. This allows employees to claim 80 cents per hour worked from home for all running expenses, rather than needing to calculate costs for specific running expenses.
  • Motor vehicle expenses – you can claim a deduction for work-related car expenses if you use your own car in the course of performing your job as an employee e.g. to carry bulky tools or equipment, attend work-related conferences or meetings and deliver items or collect supplies. Home to work travel is not deductible.
  • Subscriptions to associations

 

 Superannuation

 

  •  For the 2021 financial year, you can make a concessional super contribution of up to $25,000 into your superannuation fund.
  •  You may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income, for example, from your bank account directly to your super fund.
  •  Before you can claim a deduction for your personal super contributions, you must give your super fund a notice of intent to claim or vary a deduction for personal contributions form and receive an acknowledgement from your fund. 
  •  You can't claim a deduction for superannuation contributions paid by your employer directly to your super fund from your before-tax income e.g. the compulsory super guarantee.

 

A general list of information to start organising prior to 30 June

 

  • Income statement
  • Interest income from banks and building societies
  • Dividend statements for dividends received
  • Tax statements of managed investment funds
  • Rental property statements from real estate agent and details of other expenditure incurred
  • For share sales or purchases, the purchase and sale contract notes
  • For real estate sales or purchases, the solicitor's correspondence for the purchase and sale
  • Any expenses related to your work you have not claimed from your employer
  • A record of hours worked from home
  • Self-education expenses
  • Travel expenses
  • Donations to charities
  • Payments for income protection or sickness and accident insurance
  • Health insurance and rebate entitlement
  • Family Tax Benefits received
  • Commonwealth assistance notices
  • Details of any transactions involving cryptocurrency (e.g. Bitcoin)
  • Details of any income derived from participating in the sharing economy (e.g. Uber driving, rent from AirBNB, jobs completed through Airtasker etc.)

 

Companies

 

Tax Tips to Consider Prior to 30 June 2021

 

1)      Utilise the $150,000 instant asset write off – the instant asset write-off enables your business to claim an upfront deduction for the full cost of depreciating assets in the year the asset was first used or installed ready for use for a taxable purpose. 

2)      Write-off bad debts – to be a bad debt, you need to have brought the income to account as assessable income and given up all attempts to recover the debt. It needs to be written off your debtors' ledger by 30 June. 

3)      Review your asset register and scrap any obsolete plant and equipment – rather than depreciating a small amount each year, if the plant has become obsolete, scrap it and write it off before 30 June.

4)      Bring forward repairs, consumables, trade gifts or donations – to claim a deduction for the 2021 financial year, consider paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June.

5)      Pay June quarter employee super contributions now – the next quarterly superannuation guarantee payment is due on 28 July 2021.  However, some employers choose to make the payment early to bring forward the tax deduction instead of waiting another 12 months. 

 

Financial Housekeeping


  • Do you use the Small Business Superannuation Clearing House (SBSCH)?
  • If you intend to claim a tax deduction for super payments you make for employees in the 2020-21 income year, those payments must be accepted by the SBSCH on or before 23 June 2021. This allows processing time for the payments to be received by your employees' super funds before the end of the 2020-21 income year. Remember to check with your employees if their super fund details need to be updated in your SBSCH account.
  • Single touch payroll – where payments to employees have been reported to the ATO through single touch payroll, a finalisation declaration generally needs to be made by 14 July 2021 for employers with 20 or more employees and 31 July 2021 for those with 19 or fewer employees. Payment summaries do not have to be provided to employees. Instead, employees will be able to access their Income Statement through myGov.
  • Reportable fringe benefits – where you have provided fringe benefits to your employees in excess of $2,000, you need to report the FBT grossed-up amount. 

 

A general list of information to start organising prior to 30 June

 

  • Accounts data file (MYOB, Quickbooks, access to Xero)
  • Debtors & creditors reconciliation
  • Stocktake if applicable
  • 30 June bank statements on all relevant loan documents
  • Documents on new assets bought or sold, including the date you entered the contract and the date the asset was first used or installed ready for use
  • Payroll reconciliation
  • Superannuation reconciliation
  • Bank statements on operating accounts
  • Cash book (if applicable)
  • 30 June statements on any investment or operating accounts 

 

SMSF

Items to Consider Prior to 30 June 2021

 

  • Ensure that contributions are made and received by 30 June. If contributions are by EFT, ensure that the contribution is recognised in the bank account as at 30 June.
  • Where applicable, ensure minimum pension payments have been withdrawn from the fund's bank account by 30 June.
  • Review your fund's investment strategy including the appropriateness of any existing insurance held by the SMSF or the need for insurance coverage for fund members.
  • Rectify any outstanding compliance issues noted by your auditor.

 

Carry forward unused concessional contributions

If you have unused concessional contributions, that is, you did not contribute the full $25,000 from FY 2019, then you can carry forward these amounts for five years on a rolling basis if your total superannuation balance is below $500,000. Concessional contributions include employer contributions (super guarantee and salary sacrifice) and personal contributions where you have claimed a tax deduction. 

 

A general list of information to start organising prior to 30 June

  • Bank statements (including any new accounts including term deposits) from 1 July 2020 to 30 June 2021

Investments

  • Portfolio valuation as at 30 June 2021 and transaction history reports (if applicable)
  • All documentation from your portfolio or wrap provider including yearend tax statements
  • All dividend & tax statements
  • Buy & sell contracts for shares sold or purchased
  • Any other documentation received during the year that relates to takeovers, restructures, bonus shares, consolidations etc. for shares held by the fund. 
  • Any other document relating to an investment held within the fund which has not been covered above

Property

  • Agent statements (either monthly or annual) if using an agent to manage property, otherwise, all invoices and rent receipts for the year ending 30 June 2021
  • A copy of the current lease/rental agreement (if not already provided)
  • Documents for property bought or sold, including the date you entered the contract and the date the asset was first used or installed ready for use
  • Rental appraisal & market valuation from an agent (if you are using one to manage your property)

Rollovers

  • Copy of any Rollover Benefits Statements for money rolled into the fund during the period 1 July 2020 to 30 June 2021

Insurance

  • Copy of life insurance policy annual renewal documentation form (the ownership of the policy should always be in the name of the superannuation fund)
  • Copy of documentation relating to any new insurance policies from 1 July 2020

Other

  • If you have transactions in your fund that do not fall into the above categories, please ensure that you provide us with full details

 

 

Chartered Accountants Australia + New Zealand MYOB Intuit Quickbooks Xero