As we approach the end of financial year, tax planning becomes essential for businesses and individuals aiming to understand their tax liability and understand their deductions. By taking a proactive approach with tax planning ahead of the end of financial year you can end up making smarter financial decisions, improving cash flow and long-term financial security.
The 2024-25 Financial Year is upon us and it has brought several new laws which may impact you.
The Australian Tax Office (ATO) has outlined its focal points for this tax season. These areas mirror focus areas from the previous year however, they should still be regarded as important to ensure correct compliance.
This time of year can often be stressful as the complexities and ever-changing regulations of lodging your tax can make the process seem overwhelming. In an effort to save time and money some people, particularly those who are at a younger age, may choose to take on the task of preparing their tax returns themselves. However, what might seem like a simple task can actually cause you quite a bit of trouble if executed incorrectly.
With the End of Financial Year only days away, it is crucial to understand what is eligible for deduction and what isn’t as this can help to avoid complications later on. Some business owners mistakenly believe that registering a business will grant them the ability to deduct any or all expenses. However, this is not the case.
The ATO has warned taxpayers to be vigilant on a range of claims that they will be paying greater attention to during tax time. These claims include work-related expenses, cryptocurrency gains and rental income and deductions. The ATO has stated the areas in high focus are where most mistakes are made…
The media release outlined that the ATO has sent more than 80,000 awareness letters regarding outstanding debt. This gives some context to the recommencement of ATO debt collection activities. The ATO’s collection activities were publicly acknowledged in a Senate Economics committee meeting in February 2022.