With the end of the 2018 income tax year ending on 30 June, this document draws your attention to year-end tax planning strategies and compliance issues you need to consider to ensure you are in good tax health.
Taking into account the most recent tax changes, this Planner will focus on the most important issues to consider by small to medium businesses and individuals to increase their tax refund or minimise their tax liability in respect of the 2018 income tax year.
Where relevant, mention will also be made of further impending tax changes (i.e. changes that are not yet law – for example the 2018 Budget proposals) that may affect your tax position in 2018 or later years.
This document is divided into 3 main areas:
- Concise overview of 2018 year-end tax planning (i.e. what new or existing legislated measures or proposals affect 2018 year-end tax planning);
- Different tax year-end planning issues to consider in 2018 (i.e. general strategies or specific strategies for each type of taxpayer);
- Other proposed future changes to be aware of.
One interesting procedural matter this year is that because 30 June 2018 falls on a Saturday this year, ATO payments or lodgements due on that day or on Sunday 1 July can be made on Monday 2 July 2018 without incurring a general interest charge. If at all practically possible, all actions, payments or lodgements should be undertaken before Friday 29 June 2018.
However, we would recommend that for actions that must be undertaken by 30 June 2018 such as qualifying for a deduction for superannuation contributions, that those contributions be received by the superannuation fund well before 30 June; contributions not in the superannuation fund’s bank account by 30 June will not be eligible for a tax deduction. Trading stock must also be valued on 30 June; detailed records must be retained of the stock taking process for at least five years.
Please keep this “date shuffling conundrum” in mind when reading our Planner and reference is made to actions to be undertaken by 30 June 2018.
How can Nexia Edwards Marshall NT help you?
Please speak to Sarah McEachern or a Nexia Edwards Marshall NT adviser before implementing any tax planning strategies mentioned below because unexpected tax or other consequences may arise (e.g. the general tax anti-avoidance provisions may still apply).
Our specialist team can perform a financial health check on your business to identify some extra ideas to assist you in operating your business more tax efficiently. After all, why pay more tax than you legally need to?
