CG Update March 2023

Staff News: Sue Dixon has recently joined our team as a GST processor and is settling into her new role. Sue and her husband run their own farming business.

End of Financial Year:

• Businesses with a March balance date will find a green questionnaire enclosed.
• This questionnaire is also your instruction to us to compile your financial statements and tax returns. We are required to keep it on file.
• Please sign and send it in.

Year-end Tax Tips: The enclosed Trial Balance Newsletter has some tips. Here is a summary of a few:

Pre-pay expenses: Pre-paying tax-deductible expenses before 31 March will help to reduce your tax bill. Some categories of business expenses can be pre-paid without any limitations. Most other expense categories have limits but can still be claimed in advance.

Repairs: If any business assets require some R&M, do it now so the expense can be claimed in this financial year.

Bad Debt: Bad debt deductions can only be claimed if it’s written off prior to balance date. Make a decision on your aged debtors. Either call in the debt collectors or accept that it's not going to be paid and write it off.

Bonuses and holiday pay: Amounts payable to staff can be claimed as a deduction for the 2023 tax year provided the full amount is paid to the employee within 63 days of balance date.

Trading stock: Either dispose of obsolete stock or revalue it to the current market value.

Dairy Farmers Tax Tips: If you hope to reduce your tax bill in the next two months before balance date, be sure to spend money on items that are tax deductible.

Tax deductible expenditure includes:

• R&M on tracks, water and fencing; and applying fertiliser.
• If you plan to stock up on farm stores such as feed, fuel, fertiliser, and animal health products, the total value of unused consumables on hand at balance date must be below $58,000 to be a tax saving.

Wages & Payroll:

• Minimum wage increases to $22.70 per hour from 1 April.
• If you have set up an Automatic Payment for net wages, this wage amount may need to change. Give us a call to work out new net wages.

Working on Public Holidays:

• Over Easter, the public holidays are Good Friday and Easter Monday.
• Easter Sunday is not a public holiday.
• If staff work on a public holiday which would normally be a work day (e.g. Good Friday), they are entitled to receive time & a half plus a day in lieu. Talk to us if you’re unsure.

Donations: Pay before 31 March to claim the 33% rebate in the current year. Send your donation receipts in with your annual records and we will process your rebate claim.

If you have questions on any of the information in this newsletter, please give us a call.