Tax law is complex, so it's always worth speaking to your accountant or registered tax agent to be clear on what your business can claim in the run-up to June 30. With this in mind, here are five ways to make the most of year-end business expenses to trim your business tax bill.
1 Pay employee super contributions before June 30
Employee contributions owed under the superannuation guarantee (SG) can be paid quarterly, though some super funds, awards and private contracts require employers to pay more frequently.
As a guide, the Tax Office notes that super contributions accruing from April 1 to June 30 don't have to be paid until July 28. However, making payments before June 30 can supersize business tax deductions.
SG payments need to be received by each worker's super fund or the Small Business Superannuation Clearing House by June 30, but most funds request payments be made five to seven days before June 30 to be processed in time for the financial year cut-off.
“If you are bringing forward the contributions you may wish to check the timing of super paid last year to make sure you are not contributing 13 months or five quarters in bringing it forward, as you could push an employee over their contribution limit of $27,500. Otherwise, you may have upset employees," says Scott Harrington, director, business advisory at William Buck.
2 Prepay expenses
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