….Now is the time to nurture your financial position…..take stock of where you are and take action to preserve your future wealth…..

Tax planning will be vital for all individuals and businesses alike this financial year. Why is this? Because your tax return this year will likely be very different (income & expenses) to what it has been in the past.

The current economy is very 2-speed. There are a lot of people struggling with loss of earnings, but on the other hand there are a lot of people who have maintained their earnings, and in some cases actually seen an increase in demand.

You will need to understand how COVID-19 restrictions and shutdowns will impact your personal situation, and our Accountants at AGS are perfectly positioned to guide you to a position that you can take any steps before the end of the financial year.

To request a call back or a meeting – please click the relevant option in the email you have received and an AGS accountant will be in touch to discuss your circumstances.

Some questions you should be asking yourself are outlined below:

For Individuals:

• My income has dropped significantly – how will this affect my tax return? You may have dropped a marginal tax rate and be due for a refund of taxes already paid.
• I’ve been working from home – how will this affect my work related deductions. What can I claim for a home office? Can I claim occupancy expenses such are rent or mortgage. What does this mean for my main residence exemption? What expenses have you incurred that were previously classified as private and are now tax deductible.
• If I’m now working from home what does this mean for my vehicle log-book? Is it still valid? Can I claim travel from home to work now that I am forced to work from home?
• I have a rental property/ies and I have agreed to a rental reduction or deferral for my tenants – what does this mean for my tax return? Have you also received mortgage repayment deferrals?
• Is now a good time to make a personal superannuation contribution to claim a deduction? How much can I contribute on top of my employer contributions?
• I’m receiving JobKeeper/JobSeeker – how will this be treated at tax time?
• I own shares personally that have declined in value. Is now a good time to restructure the ownership of these shares to be more tax effective? What are my options?

For Businesses:

• As an employer or a sole trader – are you accessing all of the government stimulus measures available to you (both state & federal)?
• If you are receiving the government stimulus measures – do you know how this will affect your profitability or taxable income?
• Are you in a position to take advantage of the asset & equipment write off?
• As a small employer – are you registered and in the Single Touch Payroll (STP) system? While this is not compulsory for employers yet – it will be soon. It is best to take control of this requirement and undertake the change at a time that suits you – rather than needing to implement it at the last minute under a directive from the government.
• Something that has been forgotten to a certain degree is that there is currently a Superannuation Guarantee amnesty in place – allows you to get back on good terms for previous superannuation payment problems. Do you know what this means and if you could be affected by it?
• With a reduction in earnings for a lot of businesses – your personal remuneration plan previously implemented may not be relevant in the current environment. The last thing you want is to be making losses in your trading entity while reporting personal salary and wage income which will be taxed. You need to work out how this can be fixed before the end of the financial year

Published : 02 Jun 2020