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The top 5 End of Financial Year (EOFY) Tips for Farmers

25 June 2019

A lot of the work that Boyce do in the last couple of months of the financial year is tax planning for clients – a process of determining an approximate net income position and then helping our clients with strategies to optimise their tax position and develop a plan to achieve this outcome.  This can include a mixture of utilising the Primary Production tax provisions (including FMD’s, deferral of profit from forced sales, PP Averaging), considering timing of income and expenditure, superannuation contributions and structuring with different entities and family members.

While we’re doing that work, and in the lead up to the end of financial year, it’s a good time to plan ahead for the future.  Here are our top 5 tips for consideration:

  • If accounting on an accrual basis, ensure that all receivables and payables have been correctly accounted for before the EOFY.  Make sure that expenses on credit cards and other accounts have been picked up so that tax deductible expenditure isn’t over-looked, and make sure that unpresented cheques (ie up to and including 30 June) are included in your June bank reconciliation.  You don’t want to risk losing all of the diligent work you’ve been doing throughout the year, therefore backup your electronic records (if you’re not using a cloud-based program), keep the backup in a safe place and forward your accounting software data file to your accountant so that you know there’s a copy with them for safe-keeping.
  • Consider whether or not any changes to business structure should be considered (for flexibility, tax planning, succession planning, or some other reason).  A new financial year is the logical time to do this so that taxpayers don’t have to worry about the additional compliance requirements associated with 2 different entities operating in the one financial year.  You might also consider whether or not you could be doing something with superannuation and speaking with your advisers about whether or not there are opportunities that are suitable to your circumstances.
  • Like a change of business structure, a change of accounting system is best considered at the change of a financial year.  Consider whether or not your existing system is meeting your needs, and if not what other options might be available.  In addition all businesses will need to comply with single-touch payroll from 1 July 2019, so if you’re doing a software evaluation, consider whether or not your chosen software is going to be compatible with the new requirements.
  • Make sure that everything is in order for EOFY reporting for wages (including superannuation, PAYG withholding, workers compensation and payroll tax if applicable), June Business Activity Statement (BAS), and general financial year close off.  Make sure that all of your records are in order for your accountant, including documentation for asset purchases (including any equipment finance, contracts/settlement statements for property purchases, etc).  It’s also a good time to reconcile your livestock numbers, fodder on hand, etc that your accountant will be wanting in the months ahead – it’s often harder to get this information right as you get further away from 30 June and the numbers change.
  • EOFY is also a good time to consider whether or not there are strategic opportunities for your business and to set some goals for the future.  This could include some of the big picture items such as succession and estate planning, purchase of another property, evaluating your mix of enterprises, considering property improvements, etc.

One of the big changes for businesses in the 2019/20 Federal Budget was the expansion of the instant asset write off rules. The Government increased the instant asset write off threshold from $25,000 to $30,000. Small businesses (with aggregated annual turnover of less than $10 million) can immediately deduct purchases of eligible assets, costing less than $30,000 that are first used, or installed ready for use, from 7.30PM (AEDT) 2 April 2019 to 30 June 2020. Prior to 7.30PM (AEDT), the thresholds are:

  • To 29 January 2019 - $20,000;
  • Between 29 January 2019 and 2 April 2019 - $25,000.

Further, access to the instant asset write off  provisions has been extended to medium sized businesses (businesses with aggregated annual turnovers of $10 million or more, but less than $50 million). Medium size businesses are now also entitled to an immediate deduction for purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from 7.30PM (AEDT) 2 April 2019 to 30 June 2020.

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Boyce's City2Surf Fundraising for the Royal Far West Children's Hospital

14 June 2019

We are once again fielding a team for the City2Surf challenge in Sydney on 11 August 2019.

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2019/20 Federal Budget - What does it mean for you?

5 April 2019

Last night we witnessed Bill Shorten releasing Labor’s 2019 Budget in reply speech. Today we compare the measures within the Liberal Governments budget and Labor’s response to decipher what it means for our clients. 

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2019/20 Boyce Budget Summary

3 April 2019

On Tuesday 2nd April, the Federal Treasurer, the Hon Josh Frydenberg, handed down the Coalition Government’s national budget for the 2019-20 Financial Year. In the budget the Treasurer announced a return to a budget surplus, with a surplus of $7.1 billion for 2019-20.

The clear focus was to bring the budget back to surplus without increasing taxes. There is no significant taxation reform announced in this budget, but there are a number of mostly minor tweaks to the current system.

There is a theme in this budget to provide for future growth without burdening future Australians to fund these measures while still delivering tax relief.

This is a budget preceding an election, so there are a number of measures within this budget that are designed to improve the Morrison Government’s standing with voters.

 

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PPSR registrations due to expire

20 February 2019

The Personal Property Securities Register (PPSR) was established seven years ago by the Australian Financial Security Authority and is a national online register that allows security interests in personal property (such as cars and equipment) to be registered. On 30 January 2019, the PPSR will be seven years old and as such many registrations may now have expired, or be approaching their expiry date. If you have interests registered and haven’t checked the expiry date, we encourage you to log into the PPSR and request a free 'registrations due to expire report'.

What is the PPSR

For those of you unfamiliar with the PPSR, it is a central registry where:

  • You can register a claim over property that you have leased, financed or sold under invoice or consignment terms to protect your interest in the property;
  • You can check if an item of personal property has a claim over it. For example, you can check to make sure there isn’t a claim over a 2nd hand car you may wish to purchase which for a small fee is a worthwhile exercise to do.

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