END OF FINANCIAL YEAR MATTERS
This year 30 June is on a Sunday. Please attend to these tax matters before Friday 28 June.
LOSS OF INSURANCE IN INACTIVE SUPERFUNDS
Check any superfund accounts in your name where your members balance is less than $6,000 or has been an inactive account for 16 months. Inactive is a superannuation account that has not received a contribution or rollover in the last 16 months.
To avoid closure and transfer of these superannuation accounts to the ATO and importantly the loss of any insurance cover in these superannuation accounts please take action to ensure these superannuation accounts remain active in your name.
Steps you can take are;
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Reply to the communication from your superfund
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Contact your super fund to opt in for continuance of the insurance cover
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Make a contribution to your superfund at least every 16 months
SUPERANNUATION
If you are an employer check you have paid 9.5% of your employee’s gross wages to their nominated superannuation fund.
The maximum concessional contribution cap is $25,000 for this financial year. Consider topping up your contributions to meet the concessional contribution cap.
Please be aware of the cutoff dates for making superannuation contributions - The ATO Small Business Superannuation Clearing House (SBSCH) has stated that Monday 24th June is the cutoff date for employers using their system. If you don’t use the SBSCH, then most super funds will not be able to recognise contributions if they are not made before Friday 28th June, we recommend you act by Wednesday 26th June at the latest
If you are drawing a pension from your superannuation fund make sure you draw the minimum pension amount before Friday 28 June.
INSTANT ASSET WRITE OFF
For small businesses with gross income of less than $10m from 2 April 2019, the instant asset 100% deduction threshold increased to $30,000. This write off applies to new or used asset purchases. This new threshold applies to 30 June 2020.
PAYROLL
The Single Touch Payroll system applies for all employers from 1 July 2019. If your only employees are a related persons your commencement date is 1 July 2020.
EXPENSES
If you have been invoiced for an expense but it is not due until after 30 June , consider paying the expense before 28 June 2019.
CAPITAL GAINS
If you have made a taxable capital gain and also have unrealised capital losses consider realising the capital loss to offset the capital gain.
If you are considering selling an asset which has a capital gain, consider selling the asset after 1 July 2019 to defer the capital gain tax liability for another financial year.
TRUSTS
If your structure includes a discretionary trust ensure the Trustee makes a resolution regarding the distribution of net trust income before 28 June 2019.
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