EOFY Countdown: 3 Crucial Tax Moves to Make Before June 30
As we hit mid-June and the Melbourne chill sets in, it’s time to get warm on one hot topic: EOFY tax planning.
In our latest 2-minute video, we break down:
✅ The one thing you must do with your family trust before June 30
✅ How to manage unpaid invoices and reduce your tax
✅ A smart move to defer (or accelerate) capital gains
Got questions or need help making smart decisions before June 30? We're here for you — reach out to me or the Millens team today.
VIDEO TRANSCRIPT
Ross Millen:
Hi. Here we are, almost the middle of June, and apart from the wintry Melbourne weather, we've got to think about the end of the financial year. Now, one of the most important things is if you've got a family discretionary trust, you must make your trustee decision as to your distributions on or before the 30th of June. So sometimes the trustee might say, "What will happen if you don't do that?" And so the distributions might go to people that you don't intend or for the wrong amount. So remember on or before the 30th of June, you must do your trustee resolution.
Another thing to think about is if you are accrual accounting and you've issued accounts that aren't going to be paid, well, you can write them off or make provisions for tax. Talk to your accountant about that or talk to us. But remember, there's a lot of tax planning you can do in your business before the 30th of June.
And a final thing to think about is what happens if you're just about to sell an asset. Now, of course, if you sign the contract before the 30th of June, you're going to have capital gains tax in this tax year. Whereas if you can defer the signing into July, the first week of July, even the 1st of July, then you're going to defer the capital gains into the next tax year and give yourself a whole extra 12 months to prepare and get ready to pay any capital gains tax. Of course, if you're selling an asset and creating a capital loss, you might want to create it this year. So if you've got any queries about end of financial year, what your obligations are, or your tax planning, remember to contact me at Millens or anyone else from the Millens team. We're here to help you.
