As we approach the end of the financial year it’s a good time to start thinking about what you could do to minimise your tax liability.

We have prepared a summary of our tax planning tips for the 2020 financial year. Some of the items covered need to be actioned ahead of 30 June. Other items that are not necessary to complete ahead of 30 June, but are worth considering over the next couple of months.

Plant & Equipment

  • Consider whether you have any obsolete plant & equipment to write off
  • Consider new asset purchases. If your business has turnover of less than $500 million, for assets purchased between 12 March and 30 June 2020, you are able to claim:
    • an immediate tax deduction for assets costing less than $150,000 (GST exclusive amount)
    • accelerated depreciation (50% in the first year) for assets costing more than $150,000

Trading Stock

  • Conduct a stocktake at 30 June
  • Write off any obsolete or damaged stock
  • Choose your stock valuation method. You can use cost, market selling value or replacement value, and this can be changed each year

Other Considerations

  • Reduction in tax rate from 1 July 2020 for small companies (drop from 27.5% to 26%)
  • Prepay expenses. If your business is a small business entity, you are entitled to a tax deduction where expenses covering a period of up to 12 months are prepaid
  • Defer income. If possible, invoice after year-end
  • Review and write off bad debts

COVID Considerations

  • JobKeeper & Cash Flow Boost payments: ensure that records are kept to prove eligibility
  • Double check the accounting and tax treatment of payments (if required)

Trust Specific

  • Under ATO guidelines all trusts have to resolve where they would like to distribute their income for the 2020 financial year prior to 30 June 2020. We prepare trustee resolutions for our clients and will send these out ahead of 30 June
  • Landholdings held by trusts need to be reported to Revenue SA by 31 July 2020

Capital Gains Tax

  • If you have made a capital gain during the 2020 financial year, you may consider realising a capital loss (if appropriate) on another asset to offset the capital gain

Cash Flow

  • Vary PAYG instalments for the June 2020 quarter (if appropriate). This is best done in conjunction with an estimate of your 2020 tax position


  • Pay your super before 30 June. In order to get a tax deduction for the 2020 financial year, super contributions need to have been received by the superannuation fund by 30 June
  • Any unpaid or late superannuation payments between 1 July 1992 and 31 March 2018 can be paid and disclosed to the ATO under the superannuation guarantee amnesty (applications close 7 September 2020). Further guidance is available from the ATO here

Employees and Individuals

  • Personal superannuation contributions can be made up to your $25,000 cap (which includes contributions from your employer). To claim, your super fund will need to have received the contribution prior to 30 June and you will need to provide them with a notice of intent to claim a deduction
  • Home office expenses: You can claim 80 cents per hour for the period 1 March to 30 June 2020. Further guidance is available from the ATO here
  • Retain receipts for any expenses you would like to claim
  • If you travel over 5,000kms in your motor vehicle for work, consider maintaining a new logbook (to be completed every five years)
  • Consider varying your PAYG instalments for the June 2020 quarter (if appropriate)

Primary Producer Specific

  • Specific concessions are available to primary producers, including the use of farm management deposits and accelerated depreciation for the purchase of certain farming assets

If you would like any further detail on the above, or for an estimate of your tax position for the 2020 financial year, please contact your Holman Hodge advisor.