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End of Financial Year Tax Planning – Don’t Leave It Too Late
As the end of the financial year approaches, many primary producers and business owners are reviewing their financial position and considering strategies that may assist with tax planning and cash flow management.
While every business situation is different and professional advice should be sought before making any decisions, there are several common areas that clients often consider in the lead-up to 30 June.
Farm Management Deposits (FMDs)
Farm Management Deposits remain a valuable tool for many primary producers looking to manage taxable income and build financial resilience.
For those considering making an FMD before 30 June, it is important to act early. Financial institutions often have processing deadlines that occur several days before the end of the financial year, particularly for new accounts or first-time FMD holders where identification and account setup requirements apply.
If an FMD is part of your EOFY strategy, now is the time to discuss your options and confirm relevant cut-off dates with your bank or adviser.
Loan Prepayments
Prepaying eligible interest expenses can be another strategy considered by some businesses as part of year-end tax planning.
Many lenders require prepayment quotes to be prepared and accepted before the end of June, with some requiring several business days to process requests. In some cases, fixed-rate loan arrangements may also need to be completed before a prepayment quote can be provided.
If you are considering a prepayment strategy, it is important to allow sufficient time for discussions with your accountant and lender to ensure all requirements are completed before applicable deadlines.
Equipment Finance
Businesses planning to purchase or finance machinery, vehicles or other capital equipment before year-end should be aware that finance applications, approvals and settlement processes can take longer than expected.
Lenders typically require completed applications, supporting documentation, identification requirements and insurance arrangements to be finalised before settlement can occur. As EOFY approaches, increased demand can place additional pressure on processing times.
Starting the process early can help avoid delays and improve the likelihood of meeting financial year deadlines.
Plan Ahead
The most important EOFY reminder is that deadlines vary between banks, lenders and finance providers. Waiting until the final week of June may limit available options or result in missing key processing cut-off dates.
If you are considering an FMD, loan prepayment or equipment finance as part of your end-of-year planning, we encourage you to contact our office as soon as possible. Early discussions provide the best opportunity to assess your options and ensure any required applications or documentation are completed before relevant deadlines.
Please contact our office if you would like to discuss your EOFY tax planning opportunities.