![Banjo Loans’ top tips for getting into tip top shape for this EOFY and FY24 Banjo Loans’ top tips for getting into tip top shape for this EOFY and FY24](https://australianfintech.com.au/wp-content/uploads/sites/7/2023/06/b2727f41192420376164a301588be093-e1687993733710.png)
Banjo Loans’ top tips for getting into tip top shape for this EOFY and FY24
As the end of financial year rapidly approaches, you may be feeling a tad overwhelmed with your ‘to do’ list longer than the lyrics in Bohemian Rhapsody.
So, it’s fortunate that the fine people at leading fintech SME lender Banjo Loans have put their heads together to come up with a list of handy tips for small businesses to get in shape for June 30 as well as a head start for FY24.
LAY IT ALL OUT ON THE TABLE
The best place to start is by gathering all the required documentation in one place including sales and business purchase receipts, work-related expenses receipts, tax return records, business activity statements, GST returns and employee super contributions – the whole kitten kaboodle.
GDP ADJUSTMENT FOR PAYG AND GST
Now that you’re organised, we can get into the nitty gritty of tax time details such as GDP adjustment for PAYG and GST.
A planned 12 per cent GDP adjustment for businesses falling under current PAYG and GST instalment thresholds ($50 million and $100 million respectively) has been pared back to 6 per cent (albeit an increase from the current 2 per cent) for FY24 meaning businesses aren’t in for a huge shock when the new rates kick in.
The GDP adjustment refers to the extra percentage put on top of PAYG and GST instalments to help businesses keep on top of their tax liabilities, so they don’t get a massive tax bill at the end of the year.
Any cut in the rate frees up much needed cash for SMEs so is welcomed.
INSTANT ASSET WRITE OFF
This is a great way for businesses to purchase assets such as vehicles, machinery and equipment and claim the full value of the asset rather than depreciation over the asset’s lifetime.
The asset must be purchased and used in the same year that the write off is claimed.
During COVID this was increased to $150,000 per asset, however, the Federal Government has significantly curtailed the write off to $20,000 for FY24.
Turnover for eligible businesses was also reduced from $500 million and below to $10 million and under.
SMALL BUSINESS ENERGY INCENTIVE
This is a new initiative for FY24 announced by the Federal Government in the May budget and meant to encourage small businesses with turnover less than $50 million to invest in electrification and efficient energy appliances and systems.
The tax deduction provides small businesses with an additional 20 per cent deduction on spending on investments such as electrifying their heating and cooling systems, upgrading to energy efficient fridges and cooktops and installing batteries and heat pumps.
Eligible small businesses can spend up to $100,000 under this incentive with the maximum deduction set at $20,000 per business.
REGIONAL SME SUPPORT
The Regional Small Business Support Program Pilot provides free financial counselling and related services for small regional businesses facing hardship due to drought, the covid pandemic, the 2019-20 bushfires and flooding events in 2022 and 2023.
The Federal Government will end the program on June 30 and the tailored support promises assistance for businesses to better understand their financial position, identify long-term recovery options and connect with government programs and assistance schemes.
HELP AT HAND
Banjo Loans’ most recent SME Compass found one in five SMEs across Australia have built up tax debt which will see a number of small businesses seek out loans to help manage this issue.
Fortunately, the team at Banjo are experts at creating tailored financial solutions for SMEs, making it achievable for hard-working business owners with good forecasts to reach their goals.
Reach out here and start the conversation.