The 2022 financial year has been another eventful year for most, having to continue to face unprecedented economic conditions, among many other challenges.

Now that we are entering the last month of the financial year, there are a number of matters which you should still attend to as follows:

1. Review your accounts receivable. If there are any invoices that you have given up all attempts to recover you should write these off prior to 30 June 2022 to ensure that you receive a tax deduction for these amounts.
2. Review your asset register. If there are any items on your asset register that no longer exist or are obsolete please let us know what these are and we will scrap them and write them off prior to 30 June 2022. If you own any assets that aren’t on your asset register, please discuss with us so we can account for these.
3. Pay all outstanding, and any additional, superannuation contributions prior to 30 June 2022 to ensure that you receive a tax deduction for these amounts. Most superannuation clearing houses require 10 business days, therefore if you would like the superannuation fund to receive these contributions prior to 30 June 2022, these payments will need to be made by 20th June.
4. Make payment of employee and owner bonuses. Understandably this may be in limited circumstance for the year ended 30 June 2022, however if you were planning to pay some bonuses then these should be processed and paid prior to 30 June 2022.
5. Keep your single touch payroll up to date and finalise your annual declaration prior to 14 July 2022.
6. Perform a stocktake of your goods as at 30 June 2022, record this and advise us, to ensure these amounts can be correctly included in your 2022 financial statements.
7. Record your cash on hand as at 30 June 2022 and advise us, to ensure this amount can be correctly included in your 2022 financial statements.
8. Temporary full expensing. This was previously known as the ‘instant asset write-off’ and works very similar, it enables your business to claim an upfront deduction for the full cost of depreciating assets in the year the asset was first used or installed ready for use for a taxable purpose. This is in place until 30 June 2023 so if the 30 June 2022 deadline is missed the assets can be included in your 2023 tax return.
9. Companies will have the option to utilise the temporary loss-carry back extension. This will apply to losses generated in 2020-2023FY, that will then be applied to taxable income generated in the 2019-2022FY to claim a refundable tax offset in the year in which the losses are made.

In addition to the above, the government 2022-23 budget was announced in March and is awaiting royal assent. Should the below measures pass, they will have an impact on the 2022 year end should you wish to take advantage of these.

We have highlighted the following budget measures which might be applicable to you should they pass the senate:

1. Technology Investment Boost. We will be able to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security or subscriptions to cloud based services. There will be an annual cap of $100,000 for each qualifying year, anything above the cap will continue to be deductable expenditure under existing law. Note that the guidelines are currently setup so that the 20% generated in the 2022 FY will be claimed in the 2023 tax return, so there will be a 12 month delay in receiving this boosted deduction.
2. Skills and Training Boost. We will be able to deduct an additional 20% of expenditure incurred on eligible training courses provided to employees. This boost is intended to run until 30 June 2024 and currently has no cap in place. Note that the guidelines are currently setup so that the 20% generated in the 2022 FY will be claimed in the 2023 tax return, so there will be a 12 month delay in receiving this boosted deduction.

As these measures around deductions require the acquisition of assets, this will clearly have an impact on the business cash flow and this should be taken into account given the current economic conditions.

If you are interested in having a meeting to discuss your tax position for the 2022 financial year, please let us know and we can book a time in for you before the end of June 2022.

If you have any questions or concerns regarding any of the above, please do not hesitate to contact us.