1. Pay Any Super Owing Before 30 June 2014
Did you know there will be a compulsory rise in superannuation contributions from 1 July 2014 onwards? The rise is minute but as anything with money, it does make a significant difference when aggregated. Prior to July 1st you are making 9.25% at contributions and after the new policy takes effect, contributions will be set at 9.5%.
Although superannuation is tax deductible, it won’t be until it is paid out. So make sure that you have paid all superannuation contributions owing before June 30th as it is a great way to reduce your income tax bill. And also don’t forget to adjust your employees’ superannuation contribution to 9.5%!
2. Keep An Eye Out For Relevant Tax Changes
There will be a bunch of new policies that are taking effect after 1 July 2014 and it is important that you are aware of their implications to your business and employees. Read through changes carefully and if in doubt, seek advice. Policies like the Medicare levy increase and the new Temporary Budget Repair Levy (previously known as the Deficit Levy) are just two of the new policies taking effect in the new financial year.
3. Be Aware Of Tax Benefits
As important it is to keep an eye out for tax changes, it is vitally important to be aware of tax benefits. These change year to year and sometimes although the benefits may not seem much, you’d be surprised what it can do to your bottom line in the long term. Keep a note of whether the tax benefits are being reflected in your current business situation – maybe you are now eligible for tax benefits that you weren’t eligible for last year.
4. Review Your Depreciating Assets
One up-side of depreciating assets are that they can be available for tax deductions. Well, those that are up to the value of $6,500 and purchased before 31 December 2013. Depreciating business assets can include anything from office equipment, computers, printers and work stationery—basically anything that you use in order to run your business smoothly. It is vital that you keep track of these assets as they have huge benefits when it comes to tax deductions.
5. Maintain Your Income Producing Assets
Make an effort to keep your income producing assets up to date as this small action will keep your business operationally efficient and maximising cash flow. By doing this you are also reducing operating costs, increasing productivity and freeing up cash just buy structuring your financing and repayments to suit your tax and cash flow needs. This is just smart business 101.
6. Write Off Bad Debt
They are tax deductible! And can be used to offset your taxable income. If you are still chasing up payments from last financial year, now is the time to write them off!
7. Say Thanks To Your Staff
End Of Financial Year is always a great time to reward the hard-working people in your team. Your people are your biggest assets and showing gratitude for their contribution to your business goes a long way and will do more for your bottom line than any cost-cutting strategies you may have in place. The gesture need not be grand, but think of creative ways you can make a difference in their working life and giving them that surge of energy to do even better for the year to come.