End of financial year countdown
It’s a big time of year in the world of small business and tax, so we’ve put together a quick checklist and some key changes to be aware of to help put you and your business in the best position for the new financial year.
Pre 30 June checklist:
- Due dates
Plan for your ATO deadlines for the year ahead to be sure you don’t miss them. Here is a list of due dates we prepared earlier!|
- Superannuation
Now is a great time to get your employees superannuation sorted – ensuring compliance with due dates, superstream and taking into account the superannuation guarantee increase from 11% to 11.5%.
- Asset check
Subject to final legislation, a $30,000 instant asset write-off will apply to eligible businesses, meaning you can deduct the full cost of eligible assets that are used or installed before 30 June 2024. Beyond 30 June 2024, there is also a proposed $20,000 instant asset write-off for eligible assets that are used or installed up to 30 June 2025 (also subject to legislation).
- Finalise Trust Distribution Resolutions!
If you are a trustee of a trust, your allocation of trust profits is required to be made by 30 June. If this is not done by the due date, profits for that trust may be taxed at the highest marginal rates.
Changes from 1 July 2024 to be aware of:
- Recently announced new personal income tax rates will come into effect. Every taxpayer will be paying less tax.
- Superannuation contribution caps will increase from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions.
- The luxury car tax threshold will increase to $91,387 for fuel-efficient vehicles and $80,567 for all others.
- The depreciation car limit threshold will increase to $69,674.
- As recently announced in the Federal Budget, there will be a $300 energy relief credit for households (this will be automatically credited quarterly).
- There will also be a $325 energy relief credit for eligible small businesses.
If you have any questions about how best to manage your end of financial year countdown, please feel free to contact us.