Financial Year End Planning considerations for Small Business

As we near the end of the financial year, there are a few items that businesses should ensure are considered before June 30.

Bad Debts:

If you have any bad debts, ensure you write them off prior to 30 June 2017. As a standard procedure, you should have the directors sign minutes to approve the write-off. If you lodge your BAS on an accruals basis, you may be entitled to a GST adjustment.

PAYG Payment Summaries:

A reminder that PAYG Payment Summaries must be provided to employees by 14th July 2017. For this reason, it is important to check over your payroll data now and run any necessary reconciliations to ensure accuracy. Furthermore, these summaries must be lodged with the ATO by 14 August 2017 (some extensions are available).

Capital Purchases:

Currently the capital allowance concessions for small businesses include an immediate deduction for assets costing less than $20,000 (purchased and installed ready for use before 30 June 2017). This threshold was planned to be dropped on the 1st July 2017, however in this years budget it was announced it will continue.

Depending on your current years profits it may be worthwhile bringing forward the purchase of assets to this financial year, but it could be worthwhile holding off if your profit is low. Please contact us to review your interim accounts so we can ascertain when you should time your purchase.

Division 7A loans:

If you have a corporate structure (i.e. company) from which you and/or your associate have borrowed money, the Division 7A rules may apply to you. If the company provides its associates with personal use assets, forgives debts, pays expenses on a directors behalf, etc., a breach of Division 7A may also apply. These rules are complex and may require you to set up loan agreements.

Prepayments of expenses:

If you are a Small Business Entity with aggregated turnover of less than $10 million (increased from $2M in 2016 financial year), then you have access to certain concessions including immediate deductions for prepayments of expenses paid up to 12 months in advance.

Trading Stock:

Conduct a stocktake before year end as this value is required for your financial statements.

Stock can be valued under different methods:

  • Costs
  • Sales Value; and
  • Lower of market value or replacement cost


Payments for superannuation are only deductible in the current year if made prior to 30 June.

If you have considered a Self-Managed Superannuation Fund, now is the time to contact us to discuss these options.

Small Business restructure Roll-over Bill

This bill gives businesses the ability to restructure without triggering tax & GST implications that may have been applicable in the past. If you would like to discuss your current structure and whether another structure may be more beneficial to your business, please do not hesitate to contact us.

Article Written by Callinda Beale.

Callinda is a member of the Institute of Chartered Accountants

and a Director of South East Accounting.