We hope you are not too cold and getting some of the rain at your place. Given the time of year, we thought we would remind you of some of the planning tips you can utilise to reduce your tax.
Super planning strategy
Now is the time to prepare for the End of Financial Year, which is just days away. If you would like to put some money into your superannuation before June 30, you can make a deductible contribution of up to $25,000 along with any unused funds from last year under carry forward arrangements with the ATO.
If you are unsure about your super balance or how to access these details, please get in touch because we can usually access this information. Phone 6885 5594 or email firstname.lastname@example.org to meet with one of our team members.
PS You will need to make a contribution a week in advance according to most super funds as they get overwhelmed at this time of year.
If you are an employee, you can make your own contributions to superannuation and they can be deducted. Don’t forget you will need to complete a notice of intent to claim the deduction prior to lodging your 2021 return.
You can now write off all new or second-hand equipment purchases unlimited by cost, but the goods must be in your possession on June 30. A receipt showing that you’ve paid is not enough.
You can claim pre-paid expenses prior to June 30 on the onus that you will use them in the next 12 months. For example, you could pre-pay interest to the bank for the next 12 months and not be penalised or pay your ag supplier for chemical sprays. You could even pre-pay your accountancy fees! They also need to be paid for before June 30.
Farm management deposits
Don’t forget, primary producers can use farm management deposits to shift money into a future year. Whilst the purchase of the farm management is deductible, you pay tax on it when you get the money back.
Small business rebate
A reminder that the $1500 Small Business Rebate MUST be done by June 30.
We have not been writing many support letters so do not believe many people are claiming this. For most clients, the simplest solution is to offset it on rates paid.
Please note you need to do this through Service NSW and online. We believe they are not offering a paper solution.
Everyone is digital
FYI: According to the ATO, you are all DIGITAL NOW!
In December, the ATO decided that nearly all clients are digital. For most clients, they stopped sending paper forms from March onwards. As such, we are receiving many calls regarding unpaid bills. They do not allow us to go online and change back – it requires a phone call. The belief is that everyone should have a MyGov account or use the business portal. Of course, our Xero users can just lodge their BAS directly from Xero to the ATO. No portal or MyGov is required. Some clients are biting the bullet and deciding they will set up to receive electronically. Anyone still using the paper system will receive a letter regarding unpaid amounts. If you have any doubts, please give us a call.
Rebates available for mouse baiting
The Mouse Bait Rebate Program is expected to open in early July. Eligible households, businesses and primary producers will be able to claim the rebate for mouse bait products purchased on or after 1 February 2021. Households will be eligible to claim up to $500. Small businesses, including primary producers and sole traders, will be eligible to claim up to $1000. Read more at https://www.nsw.gov.au/initiative/mouse-control-support-program/households-and-small-businesses
If you need assistance, then you need to call us now as June 30 will be too late!
Tour de OROC has kicked off for this year and John is busy training for this important event which supports Macquarie Homestay. John will be riding for the Rotary Club of Dubbo South all the way from Mudgee to Warren, via Armatree, Walgett and Bourke and Cobar (1100km) over six gruelling days! Peacocke Accountants is a bronze sponsor of the event. Click https://www.givenow.com.au/crowdraiser/public/johncurleyraisingmoneywithtourdeoroc for more information about the ride or to support John in his quest.