Getting ready for the end of financial year
It’s just a matter of weeks until the end of the financial year. For businesses across the country, that means lots of things to get organised and to report on. If EOFY doesn’t mean much more to you than an opportunity to hit the shops for the sales, there’s a few things you should know. Some simple preparation now will help a lot when it comes time to do your tax return.
Get all your receipts organised
When you’re doing your tax return, you’ll have an opportunity to claim some tax deductions. Generally, the more deductions you can claim, the bigger your tax return may be. But to do this properly, you don’t just have to know what you can claim (see the ATO website for hints1). You also have to have your records and proof in order. That means receipts. The first step is gathering up all those receipts (printed and digital – check your inbox!) that you’ve been collecting all year. Depending on your ‘filing system’, this could mean anything from emptying a shoebox to going on a treasure hunt through your bags, wallets and laptop cases. Once you’ve got everything in one spot, sort the expenses in to categories. For example, you might have one pile for vehicle/travel expenses, one for home office expenses, and one for tools and equipment. Then start entering your potential deductions in to a spreadsheet. Have one column for the item name/description, one for the date, one for the amount, and one for the expense category. This will help make things a lot easier when it comes time to do your own tax return, or hand everything to your tax agent.
Give what you can
Been thinking about donating to a charity you really believe in? Now’s the time to strike. To get a deduction for a charity donation with your next tax return, you’ve got to make the donation before July 1. To find out whether the organisation you’re thinking of donating to is an approved donation recipient for tax purposes, do a search of the Australian Business Registry for deductible gift recipients2. You can use this to check your preferred organisation by name or postcode. Alternatively, if you know you want to do some good but you’re not sure who to give to, check out the Australian Charities and Not-for-profits Commission website,
where you can search by cause, beneficiaries, countries of operation, and more3. Then cross-check your results with the Registry’s list of deductible gift recipients.
Remember your super
This financial year is the first year in which everyone – not just self-employed people – can claim a tax deduction for after-tax personal super contributions. If you’ve got a bit of extra money and have been thinking about boosting your super, again, now would be the time to strike. Just make sure you meet the eligible criteria, and that you follow the proper procedure for making a claim. For example, you’ll have to file a proper notice of intent with your super fund. Check the procedure on the ATO website now.
Still feeling a bit underprepared for tax time? There’s heaps more you can learn to help you feel confident and organised. Remember, you’ve got access to a great range of online financial education modules right now. What you learn today could save you a lot when you do your tax return!
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This article was prepared in May 2019 by Electricity Supply Industry Superannuation (Qld) Ltd (ABN 30 069 634 439) (AFSL 336567), the Trustee and Issuer of Energy Super (ABN 33 761 363 685), and may contain general financial advice which does not take into account your personal objectives, situations or needs. Financial product advice may also be provided by ESI Financial Services Pty Ltd (AFSL 224952) (‘ESIFS’), a wholly owned entity of the Trustee. Before making a decision about Energy Super consider your financial requirements and read the Product Disclosure Statement, available at www.energysuper.com.au or by calling 1300 436 374.