END OF 2013-14 FINANCIAL YEAR TAX TIPS
Peregian Accounting Services
Unit 3 12 Grebe Street
Peregian Beach Q 4573
June is Financial New Year's Eve, and it is the time to do all those preparations that are sometimes tedious but nonetheless important. Later in this newsletter we have included a checklist to help you wrap things up for the 2013-14 financial year. As always, contact us if you would like more guidance.
IMPORTANT: Pay your June 2014 quarter superannuation on or before June 30 2014 if you wish to claim the deduction in your 2013-14 tax return.
Super guarantee obligations for your employees must be paid by 30 June 2014 in order to obtain a tax deduction in the 2013-14 financial year.
In other quarters during the year, as long as your superannuation is paid by the 28th day of the month after the end of the quarter (eg March quarter superannuation is due on 28 April) you may use the payment as a tax deduction within your upcoming tax return. June quarter is different, though. To qualify for a tax deduction in your 2013-14 return, the superannuation must be paid by the last day of the quarter, ie June 30 2014.
If you pay after June 30 2014 but on or before 28 July 2014 you may still use the payment as a tax deduction, but it will have to be in your 2014-15 tax return. If you pay after 28 July 2014 you will not be able to use the tax deduction in any year, and you will have to pay the super owing plus any penalty interest to the ATO instead of the employees' funds. You may also place your personal assets at risk, as a result of legislative changes outlined in our October 2011 newsletter.
Of course, there are circumstances where putting off the deduction until the following year might be to your advantage, such as where you operate a trust that is already set to make a loss for the 2013-14 year. If you're unsure whether you might be better off paying after June 30 2014 we can help you figure it out.
Peregian Beach near our office
Peregian Accounting -
Phone: 61 7 5448 1218
Fax: 61 7 5448 1221
Upcoming Due Dates
- June 21 : May 2014 monthly BAS due for lodging and paying (only for those on monthly reporting cycles).
- June 25 : 2013-14 Fringe Benefits Tax annual return due (if lodging electronically through a tax agent).
- June 30 : Last day for appointing a registered tax agent in a BAS role for 2013-14 year.
- June 30 : Jun 2014 quarter superannuation obligations due for payment in order to obtain a deduction in 2013-14 tax returns.
- July 14 : PAYG Payment Summaries 2013-14 due to employees
- July 21 : Jun 2014 quarterly BAS due for lodging and paying (paper lodgement only).
- July 21 : Taxable Payments Annual Reports due for building and construction industry businesses.
- July 28 : Jun 2014 quarter superannuation obligations due for payment.
Your bank details - a reminder
Remember: The ATO now require that individual taxpayers provide EFT details on their tax return if they are expecting a tax refund. The ATO will then pay the refund directly into the nominated bank account, which must be an Australian bank account but it can be a joint account or a trust account. So far, only individual income tax returns with an expected refund will have to use their EFT details to receive their refunds; companies and partnerships may still receive refunds via cheque.
End of 2013-14 Financial Year Checklist
Following are some of things you might need to consider doing before 30 June 2014 to prepare for lodging your tax return down the track:
- Perform a stocktake if you maintain inventory for resale to customers.
- Examine your business assets for any that must be written off or for missing items
- If you are expecting to make a profit for the year and you are using the cash basis for reporting (such as most of our clients are), consider whether you can prepay any deductible expenses to bring tax deductions forward into the current year.
- Conversely, if you are expecting to make a loss for the year that can't be distributed or applied against other income and you are using the cash basis for reporting, consider whether you can put off paying deductible expenses until after 30 June 2014 (such as superannuation owing, see earlier in this newsletter) to use them in next year's return.
- Make sure that any donations you are considering making in order to receive a tax deduction are allowable deductions to registered Deductible Gift Recipients.
- Look at whether it's in your interest to top up your super.
- Go through your outstanding invoices to customers and bills from suppliers for any duplicates and errors, or any that should be written off as uncollectible or non-payable.
- If you are a trustee of a discretionary/family trust, sign and return to us the minutes of distribution. The ATO now requires you to describe how you will distribute trust profits by 30 June each year, even though you may not yet know whether you have any profit to distribute. We will prepare and send these out, with distribution percentages based on the last lodged tax return for the trust, but if you know yours will be much different this time please let us know urgently.More information
- Review your financial commitments, such as office and equipment leases, to see if your current arrangements still suit your requirements.
- Perform IT audits and backups.
- Check that all your registrations - business name, domain names, IP assets, etc - are up-to-date.
- Assess your insurance needs and whether your current policies are adequate.
- If you have rental properties, ask your agent to prepare your 2013-14 Income and Expenditure Statements.
- Make sure your records are in order. Chase down the receipts of any expenses for which you paid cash, make sure your invoice books are tidy and that any missing invoice numbers are explained.
- Check that all payroll information is up to date: tax file numbers are recorded, addresses are current, date of birth and full names of employees are recorded, start and termination dates are correct.
If you have any feedback or suggestions for our newsletter please email us at
Until our next contact
Good Health & Good Luck
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