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012-065 - End Of Year Tax Planning Checklist 2020

This paper summarises various items that may need consideration, prior to 30 June 2020, for effective tax planning. A reminder that the majority of the Australian Government’s Budget for 2020/2021 has not yet been passed by the Parliament.  This page gives an overview under the following head ...Read more
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This paper summarises various items that may need consideration, prior to 30 June 2020, for effective tax planning.

A reminder that the majority of the Australian Government’s Budget for 2020/2021 has not yet been passed by the Parliament.

 This page gives an overview under the following headings:

 A. 2020 FINANCIAL YEAR IS COMING TO AN END
B. END OF YEAR TIP

  •  Prepayments
  •  Instant Asset Write Off

C. TAXING OF TRADING INCOME

  •  “Cash” basis
  •  “Accruals” Basis
  •  Record Keeping
  •  Taxation Rates
  •  Medicare Levy
  •  Medicare Levy Surcharge

D. SMALL BUSINESS ENTITY RULES

  •  Aggregated Turnover
  •  “Small Business Entity Rules”
  •  Audit Review Period
  •  Depreciation Rules
  •  Prepayments - Small Business Entity Taxpayer
  •  Staff - Bonuses
  •  Staff - Holidays
  •  Superannuation
  •  Superannuation - Self-Employed Person
  •  Salary Sacrifice Arrangement
  •  Non-Concessional Contributions
  •  Superannuation Minimum Contribution
  •  Interest On Loan Funds
  •  Repairs And Maintenance
  •  Directors’ Fees
  • Travel Deductions
  •  Motor Vehicle Expenses
  •  Donations
  •  Borrowing Costs
  •  Entertainment
  •  Gifts
  •  Audit Fees
  •  Salary Packages
  •  Legal Costs
  •  Luxury Car Tax
  •  Research And Development For Companies With Turonver Under $20M per Annum
  •  Stock Taking

E. STOCK

  •  Stock On Hand
  •  Value Of Stock
  •  Obsolete Stock

F. ASSETS

  •  Fixed Asset

G. EMPLOYMENT ISSUES

  •  Payment Summaries
  •  PAYG Withholding Tax
  •  Payroll Tax (If You Are Liable)
  •  WorkCover/Workers' Compensation
  •  Fringe Benefits Tax
  •  Living Away From Home Allowance

H. INCOME ISSUE

  •  Government Grants
  •  Personal Services Income
  •  Non-Commercial Losses
  •  Trust Distributions

I. Tax Free Thresholds

  •  Every adult taxpayer has a tax-free threshold of $18,200

J. Entities Not Defined As Small Business

  •  Applies to Businesses with a Turnover Over $10M
  •  Prepayments - Not Defined As Small Business
  •  Depreciation Rules For Turnover Up To $50M
  •  Staff - Bonuses
  •  Staff - Holidays
  •  Superannuation
  • Superannuation - Self-Employed Person
  • Salary Sacrifice Arrangements
  •  Non-Concessional Contributions
  •  Superannuation Minimum Contribution
  •  Interest On Loan Funds
  • Repairs And Maintenance
  • Directors’ Fees
  • Travel Deductions
  •  Motor Vehicle Expenses
  •  Donations
  •  Borrowing Costs
  •  Entertainment
  •  Gifts
  •  Audit Fees
  •  Salary Packages
  •  Legal Costs
  •  Luxury Car Tax
  •  Research and Development – Companies with Turnover Over $20M per Annum
  •  Research And Development For Companies With Turonver Under $20M per Annum
  •  Fringe Benefits Tax Payment (Accruals Basis)
  •  Commissions Owing (Accruals Basis)
  •  Bad Debts (Accruals Basis)
  •  Interest (Accruals Basis)
  •  Salaries And Wages (Accruals Basis)
  •  Commercial Bills (Accruals Basis)
  •  Rent (Accruals Basis)
  •  Stock On Hand - Stock Taking
  •  Value Of Stock
  •  Obsolete Stock
  •  Any Assets To Be Scrapped
  •  Payment Summaries
  •  PAYG Withholding Tax
  •  Payroll Tax (If You Are Liable)
  •  WorkCover/Workers' Compensation
  •  Fringe Benefits Tax
  •  Living Away From Home Allowance
  •  Deferring Assessable Income
  •  Settlement Discounts
  •  Bad Debts Recovered
  •  Deferring Livestock And Produce Sales
  •  Income Splitting
  •  Interest Earned
  •  Employee Share Schemes
  •  Government Grants
  •  Personal Services Income
  •  Non-Commercial Losses
  •  Trust Distributions

K. PRIMARY PRODUCERS

  •  Deductions
  •  Income Issues

L. COMPANIES

  •  Franking Account
  •  Company Loans

M. CAPITAL GAINS TAX ITEMS

  •  Capital Gains Tax - Overview
  •  Matching Capital Losses And Capital Gains
  •  Consideration Of Capital Gains Tax Implications - Overview
  •  Wash Sales
  •  Capital Gains Discounts Might Apply
  •  $6M Net Asset Value Test
  •  Planning Capital Gains Tax Issues

N. REPORTABLE PAYMENT REPORTS

  • Building and Construction Industry
  • Courier Service
  • Cleaning Service

O. SUPERANNUATION

  • Contributions To Superannuation Funds
  • Earnings Made in a Superannuation Fund
  • Pension Payments
  •  Access to Funds

P. EARLY STAGE INNOVATION COMPANY

Q. PROPERTY INVESTMENT

  • Interest On Investment Loans
  • Building Allowance
  • Depreciation – Residential Investment Property
  • Property Owner's Deductions
  • Negative Gearing

R. QUESTIONS TO ASK YOUR ACCOUNTANT

S. BUSINESS REVIEW

T. INDIVIDUAL TAX RETURNS

  • Superannuation Co-Contribution – for 2019/2020
  • Taxation Advice
  • Expense Substantiation
  • Working From Home Expenses
  • Expenses For Shareholding Investments
  • Sickness and Accident Insurance Payments
  • Home-Office Expenses
  • End of Year Tax Schemes
  • Managed Investment Schemes
  • Work Related Expenses
  • Motor Vehicle Expenses
  • Superannuation Contributions
  • Splitting Of Superannuation Contributions
  • Notification of Superannuation Payments
  • Interest Earned
  • Employee Share Scheme
  • Scheme formed after 1 July 2015
  • Scheme formed after 1 July 2009
  • Scheme formed before 1 July 2009
  • Dividends, Interest, Managed Funds Distributions
  • Salary Packaging
  • Property Income
  • Australian Taxation Office Monitoring
  • Zone Offset

U. PROVISIONS

  • Provision For Holiday Pay And Long Service Leave
  • Provision For Doubtful Debts