Tax time: Preparing for end of financial year
Make sure you’re aware of recent changes this tax time
17 June, 2024
As we near the end of the 2023-24 financial year, NSW small business owners must attend to critical deadlines and tasks to ensure a smooth transition into the new fiscal period. While you should consult a professional if you are unsure of what’s required, here’s some helpful tips on what you may need to do by 30 June 2024:
Review tax withheld changes
Changes to the tax withholding thresholds will take effect from July 1, 2024. These changes will include significant adjustments to both the income thresholds and the corresponding tax rate.
Employers should ensure they are using the latest tax tables to withhold the correct amount of tax. This is essential not just for compliance, but also to ensure that individuals do not end up with a significant tax debt or overpayment at the end of the financial year.
For more details and to view the updated tax tables, you can visit the ATO’s website on PAYG withholding tax tables for 2024.
Finalise financial records
Before the fiscal year concludes on 30 June, ensure that all financial records are accurate and up to date.
This includes reconciling bank statements, summarising income and expenses, and preparing financial statements. Accurate records are crucial for effective tax lodgement and future financial planning.
For businesses holding inventory, conducting a stocktake by 30 June is essential. This not only affects your taxable income but ensures your inventory records are accurate for the coming year.
Review and claim deductions
Maximise your tax return by reviewing potential deductions. This includes business expenses, asset purchases, and stocktakes.
The $20,000 instant asset write-off has been extended for both the 2023-24 and 2023-25 financial years. The instant asset write-off allows eligible businesses to immediately deduct the cost of assets costing less than $20,000 each. You can claim for the 2023-24 provided they are installed and ready for use by 30 June 2024.
Consider purchasing any qualifying assets before 30 June to take advantage of tax deductions. Ensure these assets are operational by the deadline to be eligible. See the ATO website for more information on how to claim.
Prepare for Single Touch Payroll (STP) reporting
Employers using STP must finalise their payroll data by 30 June. This ensures that all employee tax and super information is correctly reported to the Australian Taxation Office (ATO).
Be aware that there are different STP reporting options depending on the number and type of employees. View the STP options here.
Be aware of scams
Scammers often pretend to be from trusted organisations like the ATO. The ATO will sometimes contact you by phone, email, SMS and post. If you're not sure of who you are engaging with, do not reply. You can contact the ATO on 1800 008 540 to check. If you've been affected by an ATO impersonation scam, you can report it directly to the ATO.
Consult a professional
Tax laws can be complex and consulting with a tax professional or accountant can provide personalised advice to optimise your tax position and ensure compliance.
Staying proactive in these final weeks can not only help mitigate the stress associated with tax time but also position your business for a stronger financial year ahead. For more details, regularly check the ATO website and engage with financial advisors to tailor your end-of-year strategy.
For more tips and guidance around tax time see: