Once again, it’s that time of year when accountants really shine! I think we all understand how daunting it is to manage thousands of numbers, so it’s not like they don’t shine every day, but you get the point. 😉
What is the end of the financial year?
One of the busiest times of the year is called the end of the financial year (EOFY), or also known as “year-end closing” or “financial year-end”. In this important time, accountants get together to help businesses and individuals by reviewing annual bookkeeping, reconciling transactions, and ensuring that all financial data are accurate.
The end of the financial year is your chance to assess your financial performance, ensure you’re on the right side of tax laws, plan ahead for the next year, and set new goals. All this helps you make informed decisions and keep your business running smoothly. So, while it might seem like a hassle, it’s really about setting yourself up for financial success!
What is Australia’s financial year end?
Australia’s financial year begins on 1 July and ends on 30 June of the following year.
Key points to remember for the end of financial year
With the financial year-end rapidly approaching, there’s no need to panic. To keep you organised before the 30 June deadline, we’ve put together a checklist to guide you through the process.
Give your financial reports a fresh remix
- Ensure all your financial documents such as balance sheets, income statements, and other financial records are accurate and up-to-date.
Rock those tax deductions!
- Determine whether costs are appropriate for a tax deduction, and don’t forget to save your receipts.
- If you’re a professional in the music industry and need some guidance on what deductibles you can claim, we have created an in-depth guide just for you.
Amp up your superannuation
- Consider making a personal contribution to superannuation funds if you want to lower your taxes and avoid any penalty fees. Make sure you contribute before the end of the fiscal year, and that nothing is outstanding by 30 June.
- Want to know if the music or live entertainment industry is entitled to super? We’ve got you covered! Have a look at our blog post on Superannuation for the Live Performance Industry.
Jam with those government contributions
- If your income is under $43,445 this financial year and you make an after-tax contribution to your superannuation, you’re eligible for a government co-contribution of up to $500. This benefit gradually decreases and stops once your income reaches $58,445.
Give your investment portfolio a soundcheck
- If you are holding some paper losses from shares or other investments, it might be a good time to sell some of those poor performers to offset the capital gains from other investments sold over the past 12 months. Remember to watch out for capital gains for anything held under 12 months.
- To put it in plain English, selling investments that have lost money to balance out the profits from other investments you sold that made money can help reduce your overall tax bill. It’s a way to get rid of poor-performing investments and adjust your portfolio to better match your investment goals, even if you still have a net loss.
Instant asset write-off
- In an effort to help small businesses with cash flow and compliance costs, the government stated on 14 May 2024, that the $20,000 instant asset write-off will be extended for an additional year, until 30 June 30 2025, as part of the 2024–2025 fiscal year.
- If your small business has a turnover below $2 million and you’re considering investing in new equipment, now’s the time to act! You can claim an immediate deduction for assets costing up to $20,000.
Set the stage for next year’s financial success!
- If you made it this far, congratulations BUT we are not done here just yet. To prepare you for your financial success, financial planning and setting goals is crucial for businesses, individuals, and even musical rockstars. Don’t forget that all your financial data must be safely backed up to avoid data loss.
Now we can celebrate if you found this checklist useful 🥂
If you require further information and seek professional advice, the team here at Calculated Matters is ready to help. Don’t hesitate to reach out for personalised assistance and make the most of your financial opportunities. Cheers to a well-organised year-end and an even more prosperous year ahead!
We’re here to help! For any inquiries or support, reach out to us at 0425 223 390 or hello@calculatedmatters.com.au. We’d love to hear from you!
