With the global pandemic changing the way we do business, a new financial year is perfect to assess what is right for you.

Tax time is a busy season for any business and while you have probably just spent a lot of effort going over your past year and how it has impacted your business, planning for the new financial year should be a time to reflect on what is to come and what improvements can be made to your business.

Tax cuts

July 1, 2021, brought a range of tax changes for small and medium business owners. If a business has an annual turnover of less than $50 million, the corporate tax rate will drop to 25 per cent. Some states have also made individual changes to their own taxes. For example, payroll tax in New South Wales has been cut. Personal income tax rates will remain the same because planned tax cuts for 2021/22 were brought forward last financial year. If you are still preparing your tax return for last year you can read more about getting prepared for tax time.

Review assets

The extension of the instant asset write-off scheme means small businesses can buy assets without the need to impact cash flow. It allows businesses to buy new vehicles, upgrade technology or upgrade machinery. Businesses with a turnover of up to $50 million can instantly write off assets as long as they are purchased before December 31, 2021, and in use by June 2023.

Superannuation

From July 1, 2021, Australian workers will receive a 0.5 point boost in superannuation—taking it from 9.5 per cent to 10 per cent. This brings an added cost to business but also is an opportunity to review superannuation providers to make sure you’re getting the best deal on your own super. Superannuation companies are very competitive and it pays to shop around for a better deal.

Review finances

While tax cuts and superannuation are important to review in the new financial year, you should also reflect on expenditure and financial statements from the previous year to see what needs to be assessed. What changes can you make to your business for 2021/21 to make it more efficient and profitable? Can you negotiate better deals with suppliers or terms with clients? How are your staff? Are you in a position to motivate them or reward them? That doesn’t mean cutting cheques but maybe (because last year showed how differently we are forced to work) it is something as easy as time off if they are at home or even homeschooling.

For any business review, tax tips or superannuation questions regarding the new financial year, call Meridian Accounting and Business Services today. You can reach us at Emu Park on (07) 4938 8262 and Rockhampton on (07) 4927 4625.