EOFY 2019/2020 Tax Planning Guide for Business

EOFY 2019/2020 is Approaching!


Is your business ready to save on tax claim?

Here are some top tips from BOA & Co.’s tax guide for small business owner when it comes to year-end tax planning:

Tax planning tips for small businesses:

  • Check with your accountant or bookkeeper on how you are doing for the financial year. Mark it in your diary to do this in May next year! so you can get on top of your business tax claims.


  • Prepay expenses or delay them until next year depending on your profit.


  • No money to prepay?  Order stock from suppliers and ask them to invoice you before 30 June.  (Check with your accountant first.)


  • For once, get large asset purchases before 30 June 2020 to get the higher $150,000 immediate write off instead of $1000 next year.


  • Make Superannuation payments for deductions in 2019/20 before 26 June, or to delay deductions make them after 30 June and before 28 July.


  • Consider stocktaking to get true values, and write off obsolete stock.


  • Private Company Loans: Any loan extending beyond 30 June must be documented and any payment terms followed.


  • Bad Debts: If your business wants to claim for bad debts, remember that they must be bad and written off before the end of the financial year. Bad debts cannot be claimed by taxpayers who recognise income on a cash basis.


  • Make sure you are on top of the PAYG Withholding tax scales for 2019/20 Click here for more details.


  • If you think you are going to pay bonuses, then write them down now and claim the deduction even if paid after 30 June.


  • Prepare to record Trust distributions before 30 June.  Many small businesses use trusts as part of their overall corporate structure, and the rules on distributions have tightened.


  • Over 60 and need a tax deduction in your business?  Consider putting your Super into Transition to Retirement mode and take 10 percent pension and re-contribute for a tax deduction.


  • Consider moving insurance cover into superannuation to maintain cover in hard times or make premiums more tax efficient. (See a planner as there are plenty of traps on this one.)


   If you are also an Investment property landlord please: 

    • Get your annual Income and Expenditure Statements from your agent.
    • Prepay for any Insurances for Buildings and Contents.
    • Prepay expenses for items like pest control (your pest controller should have vouchers).
    • Do any minor repairs now and bring forward the deduction.
    • If your property is new or less than 25 years old then make sure you have a depreciation schedule prepared by an authorised Quantity Surveyor.
    • Lodge your tax as early as possible to help ensure you receive your refund sooner.
    • Keep clear records of deductible interest and non-deductible as the tax office is clamping down.
    • Consider a PAYG variation for next year to bring forward the tax benefits throughout the year.



Do you need professional tax advisory assistance? Call BOA & Co. accountants in Chatswood on 02 9904 7886 and our specialist will be pleased to assist you.

Article Author:

Leave a Comment