Chartered accountant GAIL FREEMAN offers a list of suggestions and tips to inspire business and personal change in the new financial year.

The 2024-2025 financial year is a perfect opportunity to look at ways you can improve your business and personal finances.

Here are some ideas for you which might help in that review:

Is your technology up to date? Do you need to upgrade it?

Is your security adequate? Remember, a cyberattack can be really expensive if you fall victim to one? Do you have cyber insurance just in case?

Scams are on the increase. Beware of any email that claims to come from MyGov or the ATO that tells you that you have a refund. This is more than likely a scam.

Your business is probably using single touch payroll (STP) together with the payroll program that you use. It is important to make sure you have accurately finalised STP for the 2024 financial year so that your staff can lodge their tax returns.

If you changed payroll programs during the financial year you may need assistance to make sure both programs are correctly finalised.

Do you have a budget for both your business and your personal finances? You could prepare these now for the coming year. As we are through covid, it’s a good time to take stock and review where you are now and where you want to be in the future. 

Do you know how much super you need to retire? Are you going to have enough? Maybe it’s time to put together a plan for your future. Just a reminder that the maximum contribution caps have increased to $30,000 for concessional contributions and $120,000 for non-concessional contributions. If your total super balance is less than $500,000 you may be able to utilise your carry forward concessional contributions where you did not contribute the maximum in prior years.

As an employer you need to be contributing super for your employees after July 1 2024 at the rate of 11.5 per cent. To do this, you may need to upgrade the figure in your payroll program for each of your employees. 

The tax rates changed on July 1 and you may have received a pay increase from that date. Have you thought about what you could do with some of this extra money to make it work for you effectively?

For example, you could get a tax deduction for making a contribution to super if you are eligible. Is it better to put it into super than to pay off your mortgage? Get some professional advice to check this out.

Do you have too much stuff? I know I do. So what I’ve done for presents throughout the year is to make a donation in the name of the person that I’m making the gift for. They can then claim the tax deduction for the donation in their next tax return.

I feel so much better about this because I’m not giving people stuff they don’t need, nor am I receiving it just through taking advantage of the tax system. Yes, I don’t get the benefit of the donation but my friend or relation does.

I hope you have time to think about my suggestions and get some benefit out of making small changes.

This is an opportune time to thank you for reading my tax and finance musings. I hope that they help you in your business.

If anything I’ve said in this article is something you would like to know more about please contact me on 6295 2844, email info@gailfreeman.com.au or visit gailfreeman.com.au for further information.

Disclaimer
This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser. Authorised Representative of Lifespan Financial Planning Pty Ltd AFS Lic No. 229892.