We want to provide our clients with important updates as we approach the end of the financial year (EOFY).
HECS Indexation and Planning
Each year, on June 1st 2023, HECS-HELP debts are indexed to the Consumer Price Index (CPI). In recent years, the indexation of these balances has not been widely discussed due to the CPI remaining under 2%. 2023, the CPI debt increase is expected to be around 7%. The balance will significantly increase, although interest is not applied to HECS-HELP debts.
This presents an opportunity for voluntary repayments of HECS-HELP debts. While there is no discount for early repayment, paying off the debt before the June 1st indexation will help avoid the 7% CPI increase. This option may be particularly appealing for individuals close to finalising their debt and anticipate making a compulsory repayment upon lodging their tax return. Our GrowthMD accountants can assist you with the information to facilitate a voluntary repayment.
Asset Write-Offs Reducing
Over the past couple of financial years, small business has benefited from temporary full expensing (with no deduction limit) and an increased instant asset write-off of up to $150,000. Starting from July 1st, 2023, these accelerated deductions will conclude. Depreciating assets valued above $20,000 must be written off for tax purposes over their useful lives.
If you are considering purchasing a substantial piece of equipment or any other asset valued above $20,000 in the near future, taking action before June 30, 2023, will enable you to bring forward an immediate tax deduction associated with the asset. It is important to note that the assets must be received and in use (or ready for use) before June 30, 2023. Merely placing an order for the asset without receiving it will not qualify you for the increased earlier deduction.
GrowthMD Bookkeeping Services
We are delighted to announce an exciting development for the upcoming financial year. Jollys Chin has joined our team to oversee our GrowthMD bookkeeping service, supported by two junior bookkeepers. We have limited openings available for new medical practice bookkeeping clients starting from July 1st, 2023. Our bookkeeping services will use the most up-to-date software and systems to efficiently and accurately maintain your accounts. If you are interested, please get in touch with Kelly McCormick for further information.
End-of-Year Tax Tips Webinar
On June 1st, Kelly Chard will be a special guest for the June HotDoc Education Webinar. The webinar will cover "Tax Time Tips for Your Practice," including information on tax breaks for EOFY 2023, electric vehicle concessions, and end-of-year planning checklists to ensure you are well-prepared for June 30th. Please register for the webinar here.
If applicable, superannuation contributions are deductible when received by the employee's superannuation fund or the ATO clearing house (if applicable). We recommend making superannuation contributions before June 23rd, 2023, to ensure the payments are considered a tax deduction in the 2023 financial year.
Please reach out to our team for any further EOFY questions.