In addition to the tax planning opportunities, there are a number of obligations in relation to the end of the financial year which should be considered:
Ensure that you have withdrawn the annual minimum required.
The deadline for employers to pay superannuation guarantee contributions for the 2017/18 financial year is the 28 July 2018. However, if you want a tax deduction in the 2017/18 tax year the super fund (or Small Business Superannuation Clearing House) must receive the contributions by 30 June 2018. You should therefore avoid making contributions at the last minute because processing delays could deny you a tax deduction in this financial year.
The Compulsory Super Guarantee rate stays at 9.50% for the 2018/2019 year up to a new maximum superannuation contribution base of $54,030 per quarter.
Reduction In Company Tax Rates For Small Businesses
The company tax rate for businesses with less than $10 million turnover is now 27.5%.
If you use a Trust structure, one strategy is to allocate profits to a ‘Bucket Company’ and cap your tax at 27.5% for the 2018 year. Note
that this company must have business operations to qualify for the reduced company tax rate.
Is Your Business A “Small Business” Entity?
Small businesses can access a range of tax concessions from the ATO. To qualify as a “Small Business Entity”, the business must have an aggregated turnover (your annual turnover plus the annual turnover of any business connected / affiliated with you) of less than $10 million and be operating a business for all or part of the 2018 year.
Disclaimer: This newsletter contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.