Did you have time to get your financial situation in order in time for the new financial year?
If your answer is “yes”, you’re clearly a type-A personality (competitive, time urgent, proactive). Congratulations on your efficiency!
For the remaining of you who still have some financial work left, don’t worry. I have a few helpful suggestions.
How to get ready in time for Quarter 2 of this financial year?
Here are a few useful things to consider…
1. Organise all your tax records
It may seem too soon to talk about this… but is it really?
It’s always best to prevent a messy chaos of receipts and invoices at the end of your financial year!
How? By organising them ahead of time.
For example, let’s say you want to claim a deduction for your work clothing expenses. You will need records to back up all your expenses (from the last 12 months).
Tip: Get a journal and make a habit to record all your expenses.
[ctt template=”7″ link=”gD2UI” via=”no” ]Get a journal and make a habit to record all your expenses.[/ctt]
Don’t forget to keep all your receipts and invoices. It will make tax time so much easier for you…
We have a few suggestions for a few apps that will make recording tax receipt easier for you. Find out which one works best for you here.
2. High-income tax cut
Starting with July 2017 there will be a 2% tax cut on all income over the $180,000 limit.
Just sit back and enjoy the tax cut!
3. Attention! All Uber drivers need to be registered for a GST
At the start of this year, the ATO announced they will penalise Uber drivers who aren’t compliant with the latest tax regulations.
If you’re an Uber driver, make sure you get all your tax reports and GST registrations up to date. You don’t want an inopinate visit from the ATO, I suppose.
4. Small business owners, here’s what you should know…
Remember last month, when we announced the $20,000 instant asset write-off? (refresh your memory here)
What does this mean for your small business?
You can buy items and equipment for your business up to the point of $20,000 and you can immediately deduct the business portion in your 2017 tax return.
NOTE: Assets that cost $20,000 or more can’t be immediately deducted. They will continue to be deducted over time using a small business asset pool. You write-off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.
5. Are you up to date with the latest superannuation changes?
Starting from 1 July 2017, the ATO announced some important superannuation changes:
- The concessional contributions cap will fall to $25,000 for all age groups
- The non-concessional contributions cap will fall to $100,000
Did you read our July Tax And Accounting Roundup? You can find out more information about the new superannuation changes and how will they affect you and your business.
I can give you a hand with organising your financial situation in time for Q2. There’s no better time to start than right now! Let’s get in touch here.
