Tax returns and payments


16th May, 2024

Top tips to minimise your tax this EOFY

Tax time isn’t just tedious paperwork and double-checking numbers — it’s a chance to minimise your tax liability.

This means claiming all eligible deductions and credits for the year and avoiding penalties by fulfilling your tax responsibilities.

With July 2024 on the horizon, we talked to MYOB experts Leanne Berry and Jody Sitters about minimising your costs this EOFY.

Use MYOB to meet compliance deadlines

MYOB software lets you create detailed GST and tax reports, which can be sent straight to the Australian Tax Office (ATO) for lodgement.

Ensuring that you are lodging all your compliance activities on time can help you avoid potential delays, fines and penalties.

Embrace the power of planning

Minimising your tax liability is about taking advantage of the credits and incentives on offer — and it’s much easier to do this with expert advice and planning.

Meet with your accountant or bookkeeper well before EOFY so they can discuss tax-saving opportunities and help you sort out the details in time.

For example, the instant asset write-off scheme lets you claim the full cost of big-ticket items up to a certain value, so it could be worth making a large purchase before the EOFY cut-off.

“A specialist who understands all this, and can guide you and help you, sets your business up for success,” says Leanne.

EOFY strategy for SMEs

Stay up to date with the ATO

If you want to avoid penalties and access all the benefits you’re due, it’s important to update your business details, file your returns on time, and keep track of paperwork so you can back up your claims.

Here’s how to stay on top of things:

  • Know when your tax returns are due. Use a calendar with alerts to remind you of those critical dates.
  • Organise your receipts, invoices and expenses. Attaching source documents to invoices and transactions in your bank feed is good record-keeping practice. It ensures accuracy and easier filing by making documents accessible at tax or audit time.
  • Seek advice. If deadlines are confusing or you’re unsure about completing a form, consult a tax advisor to avoid any mistakes.

Double-check deductions

Go beyond the usual expenses and explore lesser-known deductions relevant to your industry.

For example, did you know that certain professional subscriptions, educational courses, sunblock, sunglasses and a portion of your home office expenses might be deductible?

It’s also crucial to keep a record of deductions to include with your claim. Leanne encourages clients to use the MYOB Capture app to make this part of the process simple.

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“You take a photo of the receipt on your Capture app, and it goes straight into your software,” Leanne explains.

“It can then be attached to the transaction from your bank feed, and everything is contained in one place.

“It makes it easy to maintain your record-keeping for compliance and for your team of advisors to see the receipt and the source document without having to ask what the expense was for.”

Connect with the experts, reduce errors

At EOFY, mistakes can be costly. Missing a large deduction can bump up your tax bill, while a GST error or claiming for a non-eligible item could lead to penalties.

If you’re not sure whether a specific transaction qualifies for a deduction or credit, check with your accountant or bookkeeper.

The MYOB platform is set up to simplify this collaboration between you and your tax experts — you grant access, and they can view your accounts, see expense claims, and check any transactions you’ve flagged. It’s far more efficient than emailing every time you have a minor query.

GST mistakes

Free download: MYOB’s EOFY Resource Guide

As Jody puts it, proactive information sharing is much more effective than the alternative.

“Give [your bookkeeper and/or accountant] the information beforehand rather than months after the fact. It’s much better than getting a nasty tax bill because you’ve put your head in the sand,” she explains.

Be smart about invoicing

Invoicing before or after the EOFY can make a real difference to your tax liability.

If you have a large invoice that could put you into the next income bracket, you could delay it to the following financial year to minimise its impact on your taxes for the current period.

On the other hand, you could make some last-minute purchases before EOFY that can be claimed as deductions.

“One day either side of June 30th makes a huge difference,” explains Jody.

“You can hold off invoicing a big client until next year, or go to Bunnings to spend up large on tools because you need some deductions.

“It can make a big difference. Your tax bill can change dramatically.”   

Personalise your approach to GST

To register or not to register for GST?

In Australia, you must register for GST if your business earns over $75,000 in annual turnover.

However, if your business earns less than this, you can still register for GST. The right decision depends on your business model, cash flow and growth trajectory.

Here’s how early GST registration can be beneficial:

  • If you have significant GST expenses, you can claim them back.
  • It may make your business look more established.
  • Your prices will align with those of competitors who include GST.
  • If you’re projected to exceed the threshold soon, you’ll be ready.

Don’t miss minor taxes

While income tax takes centre stage, other taxes like FBT (fringe benefit tax), schedular payments and industry-specific levies can creep up on you.

Ignore them, and you could miss a tax obligation or fail to claim a credit that you’re owed.

A holistic tax strategy considers these less obvious obligations, ensuring they don’t become unwelcome surprises.

Tailored advice is paramount here, as these taxes can vary significantly depending on your business structure and sector.

Face tax debt head-on

If you find yourself in tax debt, the good news is that the ATO offers pathways to recovery — like payment plans, priority processing and help with payment if your funds are frozen.

Engaging early and being transparent about your situation can make it easier to find a solution.

Taking charge at EOFY

EOFY is about more than just deductions and box-ticking.

It’s an opportunity to reduce your tax liability and a chance for a strategic look at your finances and tax management.

Adopt a thoughtful approach — with help from a tax expert — and set the stage for sustained growth and efficiency in the following year.

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Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.

MYOB is not a registered entity pursuant to the Tax Agent Services Act 2009 (TASA) and therefore cannot provide taxation advice to clients. If you have a query concerning taxation including filing your BAS return or annual tax statements then you should consult with your accountant or other registered tax adviser.