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AAG Tax Health Check – For Businesses for 30 June 2020 – Part 1

Jun 16, 2020 | Accounting & Tax, Investments

TAX YEAR END – 30 JUNE 2020

 

We have published parts 1 and 2 of our tax strategies for individuals to assist with planning your tax deductibles.

Here is part 1 in our series of strategies for businesses.

 

 


TAX STRATEGIES PART 1: PAYROLL AND SUPER PLANNING

TAX ITEM EXPLANATION AAG TEAM
BUSINESS OWNER SUPERANNUATION Pay your own superannuation to be received by your Fund by 30th June 2020. There is now the opportunity to also contribute catch up contributions to give you up to a $50,000 deduction (depending on your circumstances). For more information, click on our article on personal tax planning for 2020 for superannuation tax deductions INVESTMENTS
and
CONSULTING
STAFF SUPERANNUATION –
JUNE 2020 QUARTER
The ATO only allows tax deductions for super payments in the current financial year if they are received by the super fund by the 30th June, so while paying your employees’ super for the June 2020 quarter isn’t due until 28 July 2020, bringing the payment forward can provide a better tax deduction in the current financial year. In our view, a business has this liability regardless of the timing of the payment, so paying before 30 June 2020 means you can claim the tax deduction in this financial year.

To claim the tax deduction for the June 2020 quarter, you have to ensure that it is received by the superannuation fund by 30 June 2020. We recommend paying the super by Wednesday 24th June 2020 to allow time to process through the clearing houses to reach the end fund in time.

CONSULTING
STAFF SUPERANNUATION –
CURRENT YEAR
Ensure your obligations are paid by the due dates to maintain your income tax deduction. If any amounts have been paid late, ensure you have prepared and lodged the necessary Superannuation Guarantee Charge forms with the ATO to minimise any interest charges and penalties. CLIENT SERVICES
SUPERANNUATION
GUARANTEE AMNESTY
You may be eligible to claim a tax deduction for unpaid/late Superannuation Guarantee payments if you make the necessary disclosures to the ATO by 7th September 2020. Please read our article on Superannuation Guarantee Amnesty for more information and details ( which we posted on 13 March 2020). CLIENT SERVICES
BONUSES If you have not paid your bonuses by 30 June, you may still be able to claim a deduction provided you have an obligation to pay this. To substantiate this, ensure the amount is quantifiable and approved (via minutes) and the staff are notified of the bonus. CLIENT SERVICES
SALARY AND WAGES
[INCL. DIRECTOR FEES]

Ensure PAYG withholding and reporting obligations have been met or you may lose a deduction for non-compliant payments from 1 July 2019.

CONSULTING
and
CLIENT SERVICES
SINGLE TOUCH PAYROLL Ensure year end payroll procedures have been completed and make a Finalisation declaration. You must make a Finalisation declaration for your employees by the following dates:

  • 14 July 2020 if you have 20 employees or more; or
  • 31 July 2020 if you have 19 employees or less.
CONSULTING
and
CLIENT SERVICES
PAYMENT SUMMARIES
(PAYG)
If you have made a Finalisation declaration in STP, you are not required to prepare Payment Summaries for your employees. If you are not exempt from providing Payment Summaries (i.e. you did not make a Finalisation declaration through STP), you need to provide your employees with their Payment Summary by 14 July 2020. In addition, you will need to lodge the Payment Summary Annual Report with the ATO by 14 August 2020 (Note: concessions apply in limited circumstances). CONSULTING
and
CLIENT SERVICES
TAXABLE PAYMENT
ANNUAL REPORTS
[TPAR]
If you operate in the following industries, you will need to prepare a TPAR:

  • Building and construction
  • Cleaning services
  • Courier services
  • Road Freight services
  • Information Technology services
  • Security, Investigation or Surveillance services
  • Mixed Services (you provide one or more of the services listed above)

And lodge the TPAR (if necessary) with the ATO by 28th August 2020.

CLIENT SERVICES

Please email us at consulting@austasiagroup.com if you have any queries.

We will be in touch again in the new financial year to discuss your specific requirements for your tax return and to help you to maximise your claims.

We look forward to assisting you with your tax returns.

Jun 16, 2020