Our Top Tips to Saving Tax Before EOFY

With the end of the financial year fast approaching, it’s essential to make strategic decisions that can significantly enhance your tax returns. Whether you’re running a business or you’re self-employed, here are five actionable tips to help you improve your financial strategies and potentially lessen your tax burden:

1. Prepay Expenses: Boost your deductions by prepaying expenses such as insurance premiums, professional subscriptions, or your business space rent. Making these payments before the year closes allows you to claim them in the current tax year.
2. Conduct a Stocktake: A thorough stocktake can be more than just an inventory check; it’s an opportunity to write off any obsolete or unsold stock. This not only reduces your taxable income but also improves your inventory management.
3. Maximize Superannuation Contributions: Increasing your superannuation contributions up to the allowable limit is a dual benefit move. You’re setting aside more for your future while enjoying the lower tax rates on super contributions, leading to potential tax savings.
4. Leverage the Instant Asset Write-off: Capitalize on the instant asset write-off by investing in new business assets. This strategy allows for immediate deduction of the asset cost under current thresholds and can also cover the interest on loans used for these purchases. It’s an excellent way to update old equipment or invest in new technology to boost your operational efficiency.
5. Address Bad Debts: It’s time to review and write off any bad debts. For a debt to be deductible, it must be formally written off in your accounts before the year’s end. This not only cleans your books but also improves your financial outlook.

These strategies are designed not only to reduce your tax liabilities but also to set a solid foundation for your financial health in the new year. If you’re considering new asset purchases or need advice on the instant asset write-off, don’t hesitate to contact us. Our team is ready to assist you in exploring your options to maximize your returns and benefits.