2017 Tax Planning Checklist: Deductions on Accrual Basis - Subject to Tax Return Being Lodged on an "Accruals" Basis

Fringe Benefits Tax Payment (Accruals Basis)

 Fringe Benefit Tax instalments due on the Jun activity statement can be accrued and claimed as a tax deduction in the year ending 30 June 2017.

Commissions Owing (Accruals Basis)

Where employees, or any other businesses, are owed commission by your business that was due for services rendered up to 30 June 2017, the accrued amount can be claimed as a tax deduction at 30 June 2017.

Interest (Accruals Basis)

Any accrued interest outstanding on a business loan that has not been paid at 30 June 2017 can be claimed as a tax deduction at 30 June 2017.

Salaries and Wages (Accruals Basis)

The accrued expense for the days that employees of an enterprise have worked, but have not been paid at 30 June 2017 can be claimed as a tax deduction at 30 June 2017.

Commercial Bills (Accruals Basis)

The discount on a Commercial Bill accrues daily. Where the term of a Commercial Bill expires beyond 30 June 2017, the discount applicable to the period up to 30 June 2017 can be claimed as a tax deduction.

Rent (Accruals Basis)

If rent is in arrears, then that part that is owed up to 30 June 2017 can be claimed as a tax deduction to the year ended 30 June 2017.

Legal Costs

Review any legal costs that have been incurred. If the legal costs relate to regular business operations, e.g. debt collections, then the costs are deductible in the year incurred. Costs relating to capital items are not tax deductible.