Checklist of Other Year End Tax Issues

In addition to the tax planning opportunities, there are a number of obligations in relation to the end of the financial year which should be considered:

If you use a Motor Vehicle in producing your income you may need to:

  • Record Motor Vehicle Odometer readings at 30 June 2023
  • Prepare a log book for 12 continuous weeks if your existing one is more than 5 years old. Please note, if you commence the logbook prior to June 30, 2023, the usage determined will still be appropriate for the whole of 2022/23. As such, it is not too late to start preparing one for the current financial year. (Tip – the ATO has an App that can assist with keeping records such as business use logbooks - https://www.ato.gov.au/General/Online-services/ATO-app/myDeductions/?=Redirected_URL

If you have started an account-based pension:

Ensure that you have withdrawn the annual minimum required.

If you are in business or earn your income through a Company or Trust:

  • Employer Compulsory Superannuation Obligations:

The deadline for employers to pay Superannuation Guarantee Contributions for the 2022/23 financial year is the 28 July 2023.  However, if you want to claim a tax deduction in the 2022/23 tax year the super fund (or Small Business Superannuation Clearing House) must receive the contributions by 30 June 2023. You should therefore avoid making contributions at the last minute because processing delays could deny you a significant tax deduction in this financial year.

  • For Private Company - Div 7A Loans  - Business owners who have borrowed funds from theircompany in prior years must ensure that the appropriate principal and interest loan repayments are made by 30 June 2023. Current year loans must be either paid back in full or have a loan agreement entered into before the due date of lodgement of the company return. Failure to comply risks having it counted as an unfranked dividend in the individual’s tax return

  • Trustee Resolutions - ensure that the Trustee Resolutions on how the income from the trust is distributed to the beneficiaries are prepared and signed before June 30, 2023 for all Discretionary (“Family”) Trusts. If a valid resolution hasn’t been executed by this date, the default beneficiaries become entitled to the trust’s income and are then subject to tax. Income derived but not distributed by the trust will mean the trust will be assessed at the highest marginal rate on this income.

  • Preparation of Stock Count Working Papers at June 30, 2023.
  • Preparation and reconciliation of Employee PAYG Payment Summaries (formerly known as Group Certificates). Note you are not required to supply your employees with payment summaries for amounts you have reported and finalised through Single Touch Payroll.

From 1 July 2023:

The compulsory Super Guarantee Contribution rate increases from  10.5 % to 11% from July 1, 2023.

The maximum super contribution base used to determine the maximum limit on any individual employee's earnings base for each quarter of 2021/22 is $58,920  and for 2021/22 is 2022/23 is $60,220  per quarter. You do not have to provide the minimum support for the part of earnings above this limit.

Company Tax Rates For Small Businesses

The company tax rate for base rate entities with less than $50 million turnover was 25% for the 2021/22 year . This rate will remain at 25% for 2022/23 income year. A base rate entity is a company that both:

  • has an aggregated turnover less than the aggregated turnover threshold ($50 million for the 2021/22 & 2022/23 income years)
  • 80% or less of their assessable income is base rate entity passive income – this replaces the requirement to be carrying on a business.


Other 2023 Year End Tax Planning Opportunities

Disclaimer: This newsletter contains general information only and no responsibility can be accepted for errors, omissions or possible misleading statements. It is not designed to be a substitute for professional advice and does not take into account your individual circumstances. Therefore, no responsibility can be accepted for any action taken as a result of any information contained in this newsletter.