Are You Ready for the End of Financial Year?

The end of the financial year brings challenges for many contractors – there are deadlines to meet, expenses and receipts to pull together, and quite probably a whole lot of questions about what you can and cannot claim as a legitimate business expense.

Other questions you might ask yourself at this time are:

  • Have you contributed enough to your superannuation account – could you make a final contribution to reduce your income tax payable?
  • Is there any equipment you could invest in prior to the end of the financial year that will reduce your annual income?
  • Would it be worth upgrading your car right now?
  • And what about investing in technology or IT training (financial incentives to do so were announced in the recent annual budget).

While you still have time to think all of these questions through right now, a better way to handle your finances as a contractor is to manage them with consistency across the year.

Here are the critical dates that you, as a contractor, should be aware of. Taking note of them now will help you remain compliant with your taxes and obligations over the coming months…. And reduce the stress next June!

1 July: the start of the new financial year. From here on in, you can apply for your tax refunds for the prior financial year.

31 October: If you don’t have an accountant, this is when you need to file your tax return. If you do have an accountant, you’ll have until the last day of the following financial year to submit your completed tax return (but don’t leave it ‘til the last minute, especially if you’re likely to get a refund!).

If you operate as a Pty Ltd Company, 28 October, 28 February, 28 April, 28 July are the lodgement and payment dates for your quarterly business activity statements.

As well as making note of these dates, it’s critical that you put money aside to cover tax payable (and even an accountant’s fees). Making realistic contributions to a tax savings account every time you are paid is a fool proof way to do this – and who knows, you may even end up with a few dollars left at the end of the financial year.

Don’t Risk It

There’s little worse than lodging your return then discovering you’ve got a massive tax debt to pay – especially if you don’t have the money aside to pay it. At the Ayers Group we can help you minimise your risks by taking care of your contractor invoices, expense claims, and superannuation contributions. When you engage our services, you can benefit from professional tax planning and we can even introduce you to industry partners who will assist with salary sacrificing, novated leasing, and living away from home (LAFHA) benefits and more. In short, we’re here to relieve you of the administrative burden and help you maximise your wealth.

Call us today to find out more.