Tips for getting ready for the EOY 2023

As the 2023 financial year comes to a close it is important to start thinking about your tax planning strategy. We have outlined some simple steps to take that could potentially save money on your tax bill and ensure there are no hidden surprises. 

1. Keep accurate records: It's important to keep accurate records of your income, expenses, and deductions. This will help you to claim all the deductions you're entitled to and avoid penalties for incorrect tax returns.  Now may be the time to consider switching accounting software to commence from 1 July – please contact our Bookkeeping Team if this is of interest. 

2. Make extra superannuation contributions: Making extra contributions to your superannuation fund can help reduce your taxable income and also help you save for retirement. The annual contribution limit for concessional (before-tax) contributions is $27,500 in 2023. 

3. Claim all work-related expenses: If you incur expenses as part of your job, you may be able to claim a tax deduction for them. This could include things like travel, tools, uniforms, and education expenses. 

4. Consider prepaying expenses: If you have upcoming expenses that are tax-deductible, you may be able to prepay them and claim the deduction in the current financial year. This could include things like interest on an investment loan or professional membership fees. 

5. Take advantage of the temporary full expensing initiative: If you're a small business owner, you may be able to claim an immediate write-off for assets that cost less than $150,000. This means you can deduct the full cost of the asset in the year you purchase it, rather than depreciating it over time.  This is set to reduce back to $20,000 from 1 July 2023 (as per the recent Budget announcement on 9th May 2023). 

6. Stocktake and Inventory values – ensure you complete a stocktake of inventory at 30 June 2023 and keep on file for when your financial statements are completed.  Closing stock impacts the amount to be included as assessable income for the 2023 year.  Be sure to consider and note any obsolete/unsaleable stock.  

7. Get professional advice: If you're unsure about your tax obligations or want to maximize your tax deductions, give us a call! 

Remember, these tips are general in nature and may not apply to everyone. Be sure to do your own research or seek professional advice before making any tax-related decisions. By following these tips, you can potentially reduce your tax liability and maximise your tax refund in the 2023 financial year.