End of Financial Year is Fast Approaching

The Essential June 30 Guide

The end of the financial year is fast approaching. We outline the areas at risk of increased ATO scrutiny and the opportunities to maximise your deductions.

Take advantage of the 1 July 2024 tax cuts by bringing forward your deductible expenses into 2023-24. Prepay your deductible expenses
where possible, make any deductible superannuation contributions, and plan any philanthropic gifts to utilise the higher tax rate. 

Businesses can take advantage again of the increase to the instant asset write off threshold for depreciating assets costing less than $20,000 and can look to increase deductions by writing off obsolete plant and equipment.

If growing your superannuation is a strategy you are pursuing, and your total superannuation balance allows it, you could make a one-off deductible contribution to your superannuation if you have not used your $27,500 cap. This cap includes superannuation guarantee paid by your employer, amounts you have salary sacrificed into super, and any amounts you have contributed personally that will be claimed as a tax deduction.

When you donate money (or sometimes property) to a registered deductible gift recipient (DGR), you can claim amounts over $2 as a tax deduction. The more tax you pay, the more valuable the tax deductible donation is to you. For example, a $10,000 donation
to a DGR can create a $3,250 deduction for someone earning up to $120,000 but $4,500 to someone earning $180,000 or more (excluding Medicare levy). To be deductible, the donation must be a gift and not in exchange for something. Special rules apply
for amounts relating to charity auctions and fundraising events run by a DGR. 

If you want to read more about the opportunities you could take and the increased ATO audit risks for 2024 read our Essential June 30 Guide.

Kerrily Rogers – Director

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