Year end 2018 checklist

Now is the time to start planning and reviewing your records to maximise your tax deductions for the 2017/18 financial year.

Here are our ten top tips for yearend tax planning for businesses and individuals:


Pay quarterly super
Super Guarantee (SG) contributions must be paid before 30 June to qualify for a tax deduction in the 2017-18 financial year. Consider bringing forward June quarter SG payments to increase the benefit.

Write-off bad debts
Review your debtor list to identify those who owe you money but are unlikely to pay.

Write-off bad debts before 30 June
– the debt must not be merely doubtful and must have been previously included as assessable income.

Prepaid expenses
Small business entities may bring forward deductible expenses such as rent, repairs and office supplies, that cover a period of no more than 12 months.

Trading stock should be reviewed before 30 June to identify any obsolete, slow moving or damaged stock. Obsolete stock must be physically disposed of for income purposes to receive a deduction.

Defer income
Businesses can benefit from deferring invoices until after 30 June. By delaying income, in effect you defer paying tax on that income for the financial year.

Depositing contributions
All of the contributions that have been recorded for your SMSF need to be deposited in the SMSF’s bank account by no later than 30 June 2018. This is especially important where members have reported concessional or nonconcessional

Capital losses
Consider selling loss-incurring assets, such as shares, to help offset your tax liability from any capital gains on other assets.

Trust resolutions
Trustees of discretionary trusts must make and document resolutions prior to 30 June 2018 regarding how trust income will be distributed among beneficiaries.

Self-education expenses
To obtain a deduction for selfeducation expenses, such as course fees, textbooks, stationery, etc., your study must either be work related or you receive a taxable bonded scholarship.

Home office expenses
Business owners operating from home can claim deductions for expenses such as room utilities, i.e., gas and electricity, business phone costs, motor vehicle expenses, depreciation and occupancy expenses, such as rent, mortgage interest, etc.

Talk to us TODAY before the 30 June 2018 deadline for assistance to reduce you tax! The team at Lee & Lee can help you with tax planning for 2018.


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