End of financial year checklist

It’s almost that time of the year again and HLB Mann Judd has released a handy end of year checklist as a tax guide for you and your business 

Pay quarterly super

Super Guarantee (SG) contributions must be paid by 30 June 2020 to qualify for a tax deduction in the
2019-20 financial year.

Superannuation Guarantee Amnesty
Employers who have historic SG non-compliance can self-correct unpaid amounts without penalty under
the SG Amnesty. Employers can claim deductions without incurring administration charges or penalties
until 7 September 2020. Payments made after this date will not be tax deductible.

Review capital expenditure
This financial year, the instant asset write-off allows eligible businesses to instantly deduct assets costing
up to $150,000 on their upcoming tax return.

Small business CGT concessions
Individuals operating a small business may be eligible for capital gains tax (CGT) concessions on the sale of business assets. The small business CGT concessions are available to business taxpayers with an aggregated turnover of less than $2 million or on business assets less than $6 million.

Obsolete, slow-moving or damaged stock should be identified by 30 June and disposed of for income
purposes in order to receive a deduction.

Contact the ATO
The ATO is responsive to businesses that are struggling to keep on top of their tax obligations due to COVID-19. Businesses struggling to meet their tax obligations should contact the ATO to discuss
deferring payments, make variations to PAYG quarterly tax instalments, or change their GST
reporting cycle from quarterly to monthly to receive quicker access to GST refunds.

Defer income
Businesses may wish to delay tax payments on assessable income this financial year by deferring invoices until after 30 June so that income from the payments won’t be taxed until the following financial

Work from home deductions
If you’ve been working from home due to the Coronavirus, the ‘shortcut method’ is available to claim 80c per hour worked on running expenses. Don’t forget to include “COVID-hourly rate” to claim on your tax return.

Capital losses
Selling poor performing assets, such as shares, may enable you to bring forward a tax loss that can be
offset against any capital gains made throughout the financial year.

Early access to superannuation
Individuals impacted by COVID-19 may be eligible for early access of up to $10,000 of their super from midApril. Those who wish to access up to $20,000 must apply twice; once before 1 July 2020, and once within approximately three months after 1 July 2020.

Rent relief for commercial tenants 

The Government has introduced a mandatory code for commercial tenants and landlords to help
commercial renters through COVID-19.

The code will apply from 3 April 2020 to SMEs with an annual turnover of less than $50 million and are
participating in the JobKeeper program.

Under the code of conduct for commercial tenancies:

  • Landlords must not terminate leases for nonpayment of rent during the COVID-19 pandemic and recovery period.
  • Tenants must stay committed to their lease terms.
  • Landlords must offer reductions in rent as waivers and deferrals proportionate to the tenant’s
    reduction in trade during COVID-19.
  • Waivers must constitute no less than 50 per cent of the total rent reduction during that period.
  • Benefits that owners get for their properties as outgoing reliefs (e.g. deferred loan payments, land tax, reduced charges) should be passed onto the tenant in the appropriate proportion.

The code will be implemented nationwide and aims to encourage parties to reach agreeable outcomes
on a case by case basis. For commercial tenants, this means negotiating rent reductions corresponding to
their annual turnover reductions and being provided extended lease terms for the rent waiver and deferral

This article from HLB Mann Juddaward winning chartered accountants -was included in their 2020 Year End Strategies Newsletter

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