The end of the financial year is fast approaching. Click HERE for an insightful article titled “The Essential 30 June Guide,” it outlines the areas at risk of increased ATO scrutiny and the opportunities to maximise your deductions. In summary:

Key Opportunities for You

1. Tax Cuts and Deductions:
– Prepay deductible expenses and make superannuation contributions to leverage the higher tax rate before 1 July 2024.
– Consider philanthropic gifts to benefit from tax deductions.

2. Superannuation Contributions:
– Make one-off deductible contributions if your balance allows.
– Utilise unused concessional cap amounts from the past five years if your balance was below $500,000 on 30 June 2023.
– Contributions to a spouse’s superannuation can also offer tax offsets.

3. Charitable Donations:
– Donations over $2 to registered deductible gift recipients (DGRs) are tax-deductible, with higher benefits for higher income brackets.

4. Investment Property Owners:
– Ensure deductions align with property being rented or genuinely available for rent.
– Understand the difference between immediate repairs and capital works deductions.
– Co-owned property expenses must align with legal ownership interests.

Key Risks for You

1. Work from Home Expenses:
– Claims need to be substantiated with accurate records and appropriate methods.

2. Investment Property Deductions:
– Be cautious of over-claiming interest on loans, differentiating repairs from capital improvements, and ensuring proper rental conditions.

3. Gig Economy Income:
– All income from platforms like Airbnb, Uber, and OnlyFans must be declared.

Key Business Opportunities

1. Bonus Deductions:
– Instant asset write-off and energy incentives for eligible assets.
– Skills and training boost for employee training.

2. Write-offs:
– Bad debts and obsolete plant & equipment should be written off by 30 June.

Business Risks

1. Tax Debt and Reporting:
– Ensure timely tax returns and debt management to avoid ATO scrutiny.

2. Professional Firm Profits:
– Properly reward professionals to avoid ATO actions on income diversion.

Click HERE to read the article with all the details.