- Cash or Accruals – Determine whether you should use "Cash" or "Accruals" tax accounting. On the cash basis, taxable income is the net of amounts that are actually received less amounts actually paid at year end. The proceeds of pre – 30 June sales which have not yet been received, are excluded from income for the current year.
- Unearned income – Make sure that you exclude any income that you may have received but not yet earned. Defer the income until the next year.
- Defer Billing – If your cashflow can stand it, think about deferring your invoicing until after 30 June. A one month delay in billing will mean you pay tax on the income a whole year later. Mind you, your customers might want you to bill pre-June so that they can claim the deduction. And a few days delay in billing will usually mean that you get paid a whole month later.
- Interest – For most taxpayers interest is only assessable when actually received. If you are lucky enough to have a few term deposits, arrange to have them mature after 30 June rather than just before.
Please contact your nearest Murray Nankivell office to book an appointment today to help us understand your specific situation and work with you to select the best strategies to help you minimise your tax bill.
The information on this website is general information only, and Murray Nankivell is, by means of this information, not rendering professional advice or services. This information has been prepared without considering your circumstances and you should seek specific tax advice about your own circumstances.
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