In preparing for the end of the financial year we think it’s best to keep your list as straightforward as possible. So here are what we think are the essentials:
Business
Make sure you have a plan to finalise your Single Touch Payroll as soon as possible after 30 June. Make sure it reconciles to your general ledger. In any event, your STP finalisation must be lodged by 14 July.
Super payments need to be made by 23 June. The ATO has advised that this is the last date for clearing houses to receive and process contributions in order for them to be deductible in 2020/21.
Prepay legitimate expenses (e.g. insurances) where possible to bring forward deductions.
Any asset purchased must be installed and ready for use on or prior to 30 June in order to access the immediately deductible rules.
Personal
Where applicable make sure you have completed a vehicle log book or have detailed diary notes to support you vehicle claims.
For personal expenses ensure you have a mechanism to justify any laundry, telephone, internet or other work related claims. This is an area of ATO focus – please consider your claims carefully.
If claiming a deduction for superannuation contributions (other than employer contributions) please complete the ATO’s Intention to claim form https://www.ato.gov.au/forms/notice-of-intent-to-claim-or-vary-a-deduction-for-personal-super-contributions/ or your super fund’s own version.
Consider prepaying interest on your rental property loan if you wish to bring forward some deductions into the 2020/21 year.