If you’re over 50 years old and have been pumping your superannuation full of extra cash, then you might want to think about doing it again – it’ll be the last year you can.
The concessional contribution cap for people aged 50 years and over was set at $50,000 during the 2011-12 year, but next year that will be lowered. If you want to make the most of that limit, you’d best do so this year.
Always remember to check off any home office supplies you might have. This includes maintaining a library for work purposes, along with other everyday items such as stationery, software and general equipment you would expect to find in an office.
You can also deduct your computer, but it’s a capital expense and must be depreciated as per the ATO’s guidelines.
The government announced a change in the budget last month, where it will crack down on living away from home allowance schemes in order to save $1 billion. If your business is paying anyone under LAFH allowances, then tax experts say you need to stay aware.
Crow Horwath national tax director Tristan Webb says the government will be tightening the screws on what employees can or cannot access under the allowance.
For instance, access to the tax concession for temporary residents will be limited to those who maintain a residence for their own use in Australia, but are required to live away from work – some of these workers are categorised as “fly-in fly-out”.
And employees will be required to justify their expenditure on accommodation and food beyond the statutory amount.
There will also be changes for anyone signing into an agreement after May 8, 2012, and from July 1, 2014 for any contracts before that time.
For instance, a year limit will be placed on how long an employee can receive the benefit at any one work location.
“You need to be talking to your tax adviser about this,” Webb says. “Particularly if you’re entering new arrangements in the next year.”
If you’re going to write down any bad debts, then you should make sure you’ve written down what these bad debts are and have them all detailed before June 30. If you don’t have it organised before then, these experts say you can run into some big problems.
The carbon tax is starting this year, but El-Ansary says there are still a few things businesses should keep in mind as they prepare for the next financial year – especially if businesses are looking at increasing prices.
El-Ansary warns that the Australian Competition and Consumer Commission will be cracking down on businesses using the tax as an excuse to raise their prices.
“The ACCC has said it will be keeping a close eye on all businesses to make sure the claims they make are justifiable in terms of raising prices.”
While this isn’t necessarily a tax-specific issue, El-Ansary says many businesses will be preparing their prices for the next year during end-of-financial-year preparations and, as a result, should be aware of what the ACCC is planning.
“Businesses that increase costs will need to be confident they can justify them.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
