Now is the time to start planning and reviewing your records to maximise your tax deductions for the 2022/2023 financial year.

Here are some of our accountant’s top tax tips for year-end planning for businesses:

1. Pay Quarterly Super early

Super Guarantee (SG) contributions must be paid before 30 June to qualify for a tax deduction in the 2022/2023 financial year. Consider bringing forward your June quarter SG payments to increase the benefit.

2. Write-off bad debts

Review your debtor list to identify those who owe you money but are unlikely to pay. Write-off bad debts before 30 June - the debt must not be merely doubtful and must have been previously included as assessable income.

3. Prepaid Expenses

Small business entities may bring forward deductible expenses such as rent, repairs and office supplies, that cover a period of no more than 12 months.

4. Stocktake

Trading stock should be reviewed before 30 June 2023 to identify any obsolete, slow moving or damaged stock. Obsolete stock must be physically disposed of for income purposes to receive a deduction.

5. Take advantage of the final year for Temporary Full Expensing

Temporary full expensing - the productivity measure designed to encourage business investments that enables a business to fully expense the cost of depreciable assets in the first year of use - is set to expire on 30 June 2023. The 2023/2024 budget will be release on the 9th of May 2023, where the government will either extend, redevelop the small business instant asset write-off, or remove the concession altogether.

6. Review your invoicing

Review and postpone some of your invoicing for the current tax year, if appropriate.

7. Contribute to your Super

Top up your voluntary superannuation contributions. You can contribute up to $27,500 in deductible super contributions each year.

If you have a super balance of less than $500,000 at the 30th June then consider using the carry forward rules to claim a deduction for any unused super contribution caps from previous years.

8. Undertake strategic tax planning with your accountant

Great accountants look at two types of tax planning: short-term and long-term tax planning. Short-term planning looks at what you can do before 30 June to minimise your tax this financial year. Long-term tax planning looks at how you can utilise your business structure and the type of investments you can make to minimise tax over the long term.