EOFY Reporting & Tax Returns

The amount of income tax our business has to pay, depends on our taxable income. It’s calculated from our assessable income less any deductions.

Taxable income = Assessable income - deductions

Assessable income is generally income your business earns. It includes all gross income (before tax) from your everyday business activities (sales etc.) as well as other income that is not part of your everyday business activities, for example capital gains. It does not include GST payable on sales you make, or GST credits

Deductions are amounts you can claim for expenses involved in running your business.

You must lodge an income tax return for any year you run your business. You need to lodge even when you don’t expect you’ll owe tax.

• The deadline for lodging your return is 31 October. 

• By lodging through a registered agent you have longer to complete your return, but make sure you contact them before 31 October.

Some things to look at before 30 June.

Businesses 

Deductions - if you are planning any one off business expenses in July (supplies, computer equipment, etc) think about getting these pre 30 June and get the deduction this tax year

Profit/loss - Understand your profit or loss position and call us if you want to have a chat:

1. If you have a profit and are worried about the tax implications, we can assist you in understanding what tax you might need to pay. 

2. If you have a loss we can assist you in managing the tax position on any drawings to ensure you aren’t paying too much tax

Accounts Receivable - Review your accounts receivable and take note of any amounts that you know won’t ever be collected and might need to be written off as bad debts;

Sales - Take note of any invoices issued in June that relate to work delivered after 1 July. Income can be deferred to a later year if the work was done in the later period 

Purchases - Take note of any purchase invoices (things you buy) issued in July that relate to work delivered before 30 June. Expenses can be brought forward to an earlier year if the work was done in the earlier period 

Stock/inventory - If your business has stock (merchandise, goods, materials, etc) record the cost value of stock on hand at 30 June

Payroll (if you have any staff)

Super contributions - Ensure your Superannuation contributions are paid before 30 June. Contributions made after that are deductible but not till the following tax year

Payroll records - Ensure your payroll records (pay runs, leave taken, etc) are up to date by 30 June

Individuals 

Work related deductions - if you have any work related expenses that are due in July (work subscriptions, computer equipment, etc) think about paying these pre 30 June and get the deduction this tax year

Capital gains/losses - Consider realising capital losses if you have already realised capital gains on other assets during 2017/18 or taking some gains if you already have losses. Note investment decisions should be made on their merits. Tax is one factor that impacts this decision. 

Trusts

Distribution minutes - For all clients using a trust, you need to consider how that trust will be distributing the income at 30 June 2018.

Step 1 - Tax Planning discussion (pre-June 30)

• See below

Step 2 - Xero Coding

• Ensure all transactions are coded to 30 June

Step 3 - Additional Info

• Ensure all info requested (see checklist below) is submitted to the accountant

Step 4 - Review Tax returns

• A Detailed review of final accounts prepared by an accountant

• Phone conversation for an accountant to "present the accounts"

Step 5 - Sign returns

• The Accountant will send digital copies of accounts to be signed

Step 6 - File tax returns & EOY Financial Statements

• File all tax info in google drive.

In order for our accountant to start our annual tax return, here is a list of the information we need to collate:

• PAYG Payment summary of all jobs;

• Details of any investment income (dividends, interest, share sales,etc);

• Details of the income and expenses on any rental properties;

• Copy of your annual Health Insurance statement;

• Details of any of the following expenses:

  • Motor vehicle business kms travelled;

  • Work Related Clothing & Laundry Expenses (if you have a work uniform with logos);

  • Work Related Self-Education Expenses;

• Dividend & Interest Deductions;

• Gifts & Donations;

• Income Protection Insurance;

• Hours worked from home (estimate on a per week/month basis);

• Work related computer/other equipment purchased;

• Work related memberships & subscriptions;

• Business use of telephone & mobile phone;

• Business use of home internet

Preparation and lodgement of tax returns

Hi Paul

Please find info below for our 2019 tax. Can we get started on it as soon as possible?

Properties- 

Please find attached:

- interest statements

- EOFY rental statements (from rental mgt) 

For these properties:

- Erskineville

- Bullimba

- Cammeray

(- Blackheath) => apportioned as per prior years

Bank fees

Bulimba - $395 annual package fee (Nov 7)

Cammeray $515 (16/9- annual package fee $395, $10/mth)

Erskinville- $395 (30/11)

Blackheath $350 (11/09/2018) 

Other Points of note

xxxx

Please find attached private health insurance

Income protection insurance statement (outstanding- just waiting for this)

Other points of note:

Ditch Investments Pty Ltd

- $5000: Received asset & invoice date prior to 30 June, payment didn’t hit our bank account till 1 July (Panthers Cylces). Can this please be booked in 2019 FY?

Do you need anything else from me to get this underway?

Cheers

James

Hi Paul

Please find below info for EOFY Ditch Investments Pty Ltd Annual Tax return:

Vehicle Purchase - $96,000 (incl GST) 

- see attached invoice

Vehicle Sale - Mazda CX5 $1200 received CASH

-> I havent banked it yet, but transaction May 2020

A note from last year:  

$5000: Received asset & invoice date prior to 30 June, payment didn’t hit our bank account till 1 July (Panthers Cylces). Can this please be booked in 2019 FY?

I think everything else should be in XERO.

Is there anything else you need from me for the company tax return?

(I will send personal tax info in a separate email)

Cheers

James