For the information of clients we enclose this checklist which you may find helpful in planning your year-end tax strategies. Careful planning (and in many cases timing) is even more important this year. Please contact your StewartBrown Manager or Partner should you need any assistance with understanding or applying the below.
Here’s a quick summary of what you need to consider for yourself and your business before the end of the financial year.
- Company tax rate to reduce from 26% to 25% on 1 July 2021 (Base rate entities only).
- Improved and expanded asset write-off incentives.
- Superannuation Guarantee charge to increase from 9.5% to 10% on 1 July 2021.
- Singe Touch Payroll (“STP”) now compulsory for all employers. Employers need to ensure their systems are ready and compliant to report using STP. Contact your StewartBrown Manager or Partner for assistance with this if necessary.
- Trustees of discretionary trusts. You are required to document your annual distribution decision before 30 June.
- Personal tax rates.
- Superannuation. Changes to some age based tests and concessional and non-concessional contribution cap limits. Ensure minimum pension amounts have been withdrawn before 30 June.
- Loss carry back measures. Companies can now carry-back losses into prior years.
- Small business concessions for medium businesses. From 1 July 2020 eligibility conditions for some tax concessions have been relaxed.
Click here to download a PDF copy of the StewartBrown 2021 Year End Tax Planning Checklist.