The countdown to the end of the financial year is now on.  And that means you need to focus on your end of year position and the planning that is appropriate for you.

Either no decision or a rushed decision can lead to the wrong outcome.  Here are six issues to get the process moving forward.

1. Basics

There are lots of little things which can be considered, but these can save lots of tax.  These include:

- write off bad debts before 30 June

- count stock at 30 June and use the appropriate valuation for each item (lower of cost, market - or replacement)

- declare and minute bonuses' and directors fees (accrue at 30 June and pay early in new financial year)

- prepayments

- employee superannuation paid by 30 June

- deferral of income to July

- maximise depreciation claims, write offs of new items, and scrap old items

- superannuation (see following)

- trust resolutions to distribute income (required by 30 June )

2. Superannuation

There have been more changes this year.

- The maximum deduction is $25,000 per person, from all sources

- A non-concessional deduction of $150,000 can be made if planning to have more assets in super.  If under 65 at 30 June this can be increased to $450,000 but no further deductions can be made for two years

- Look back at contributions too over the previous two years, as excess contributions in previous years can impact on the current year amount, and the penalty is 46% of the excess

- Trusts need to pay a salary to the principals if superannuation will be claimed by the Trust.

3. Look for the Bigger Opportunities

There are special claims in this year, we'll ask you about them when you're in, but start to think about them:

- Motor Vehicles - special write off of first $5,000 of cost

- Equipment - total write off of items under $6,500

- Company Loss Carry-Back-Rule - a loss this year can be set-off against profit last year, for a refund of company tax paid

- Entitlement to R&D tax concession - maximise the claim this year for a deduction of 150% of R&D expenditure (must exceed $20,000 to claim)

- Commercialisation Grant - can apply after 30 June for grant for a Plan, Proof of Concept, or Commercialisation of an opportunity - no limit, and based on merit.

4. Capital Gains

A special event, and full of rules and complications.

We need to know:

- Date and cost of acquisition, improvements or further investment

- Contract of sale and settlement details

- Ownership - whether trust, company, partnership or individual

-If a sale of a business, some Concessions require the transfer to super within special time limits

- Other income earned during the year (approximately)

5. Consider Cash Flow

This is essential, as some options require you to spend money or to defer income.  These have cashflow implications and you need to ensure that creating a better tax outcome does not cause a short-term cashflow problem.  Talk early to the bank, and be realistic as to how long you will need assistance for.

6. Risks

Keep in mind there are some risks with these decisions.

Tax benefits need to stack up on the risk-to-reward matrix.  Quantify the benefits and assess the downside too.

- The tax office may do an audit and review the actions at year end - bad debts written off before 30 June, stock count and valuation methods, accrual and payment of director fee and bonuses, superannuation contributed by due date, trust resolutions, conditions for loss carry back for companies, right to Small Business Concessions for capital gains, record keeping and systems

- Lodge PAYG Withholding forms by the due date, and the new sub-contractor reporting is required from the building and construction industry by 28 July

- The ATO will again be chasing super for individual subcontractors, so ensure you have agreements in place, preferably company to company, if you do not consider super is applicable to your circumstances

- The ATO is now using Benchmarks it has developed, and proposes to adjust returns where the records are not sufficient or unreliable to prove the tax return is correct

- If you are applying for loans for say a new home or investment, be aware of lending guidelines and that the lender may require a higher income to show in tax returns to qualify.

Finally, if you are not sure, take advice.  It could be just a telephone call or email.  Superannuation and Capital Gains are critical to get right and should always be checked.