End of Financial Year Top Tax Tips - Act now to Click & Collect on a Tax Windfall

​After enduring drought, fire and COVID-19 a tax return may not be high on your list of priorities, but it should be!
 
You need to act now to qualify for generous incentives such as, $150,000 instant asset deductions.
 
Don’t miss out! Organise your business expenses before the tax year ends on 30 June 2020

Time to qualify for $150,000 instant asset tax deductions
 
Is there a significant business asset that you have been thinking of buying for months? You could easily be entitled to a $150,000 instant tax deduction per asset for purchases made before 30 June. However, this deduction reduces to a mere $1,000 per asset after 31 December. If the asset costs more than the threshold, the deduction will have to be spread over the asset’s useful life, which could be 10 years.
 
Specific eligibility criteria applies, including:

• assets must be installed and ready for use by 30 June 2020
• assets must be purchased for less than $150,000
• the $150,000 threshold applies for businesses with an aggregate turnover of less than $500 million 
• car purchase deductions are limited to an asset value of $57,581.  

Personal Super Contributions
Making additional superannuation contributions before June 30 could mean valuable extra tax deductions. Note these deductions are available only for contributions made out of after-tax funds, meaning that contributions paid by your employer or salary sacrificed do not qualify. Be careful, as you can contribute only $25,000 a year to super (which includes employer-paid and salary-sacrifice super). Significant penalties apply for exceeding this cap.
 
You must notify your superfund that you intend to claim this deduction and you must receive acknowledgement of this request from your fund. Further eligibility criteria can be found on the ATO's Website. Note, super deductions are only considered “paid” once they are received by your fund. For Employers this is also true make sure that your June super is paid prior to 30 June to be deductible this financial year, for those using the small business super clearing house payments are required to be made by 23 June 2020 to be deductible for the 30 June 2020 year.

Employee Super
Employers are required to pay their employees' super before 30 June to be deductible this financial year. For those using the ATO Small Business Super Clearing House, payments are required by 23 June 2020.

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