June 2024 – Accounting and SMSF Roundup

Make sure you have maximised your annual concessional (tax deductible) and non-concessional (undeducted or after-tax) super contributions. Contact us if you’d like more information on concessionals caps and inclusions.

If you’re on a high taxable income, carrying-forward your concessional contributions can offset your income provided you are eligible. If you have less than $500,000 in superannuation as at 1 July 2023 and have never made any concessional contributions since 2018, you may be eligible to make a concessional contribution of up $157,500 in the 2023-24 year.

You can split up to 85% of your concessional contributions (including any unused carry forward concessional contributions) from a prior year with your spouse as long as they’re under their preservation age, or under 65. This may be a appropriate when your spouse has a low super balance (less than $500,000 before the start of the financial year) or is closer to retirement. You may also be entitled to an income tax offset of up to $540 for superannuation contributions for the benefit of a lower income (under $40,000) or non-working spouse who is under age 75.

If you are employed, under 71, and have a total income of less than $58,445, the government will co-contribute 50 cents for every $1 of any non-concessional (undeducted) super contributions that you make, up to a maximum of $500.

If you are drawing a pension from your super, make sure your fund has paid you the minimum amount by June 30. The minimum pension for the year is based on a percentage of your balance depending on your age. Contact us to find out more about the percentages for each age bracket.

Make sure you have obtained updated and independent valuations for all assets including unlisted assets and real property (residential and commercial), review your investment strategy and ensure related party transactions are made on arm’s length terms. If you haven’t already, also make sure you appoint an auditor no later than 45 days before the lodgement of your annual return.

If you are thinking of setting up an SMSF, now may not be the time. To avoid the fixed annual SMSF compliance costs, it may beneficial to defer until the new financial year.

You may be eligible to claim immediate deductions for assets under the instant asset write-off scheme to reduce your taxable income.

If possible, prepay expenses such as rent, insurance, and other business costs to claim them as deductions in the current financial year.

The EOFY is the perfect time to review your business structure for maximum benefits. Does your current structure meet your tax planning goals, does it provide adequate asset protection, and will it support scalability if you’re in a period of growth?