Who doesn’t like more money in their pocket at the end of financial year? As June 30 fast approaches, now is the time to ensure you’re accurately maximising the tax effectiveness of your self storage enterprise.

SSAA service member Sharp Accounting has provided seven key take-aways when it comes to making sure your tax bill doesn’t return any unwarranted surprises.

1. Bad Debts:  Consider writing off outstanding customer accounts that are unlikely to be collected. For example, when customers have exited and their storage units contain worthless goods, treating these amounts as bad debts prevents you from paying taxes on money you may never recover.
2. Instant Asset Write-Off: Consider areas in your facility where additional mechanical equipment, like a motorised sweeper, could enhance operational efficiency for your staff. You might be exploring opportunities for market expansion and realise you’ll need more assets like forklifts down the track. For the year ending 30^th June 2025, small businesses (Under $10M Turnover) may have the chance to claim immediate tax deductions on eligible depreciating assets, both new and used, valued under $20,000 per asset.
3. Prepayment of expenses: Boost your tax deductions and reduce your tax liability by prepaying expenses such as rent for leasehold facilities, payments to key suppliers, advertising or subscriptions. Keep in mind that this strategy typically allows prepayment of up to 12 months of expenses and is applicable only for small business entities with turnovers under $10 million.
4. Repairs & Maintenance: Assess your self storage facility for any repairs or maintenance that may be needed. Addressing these issues before 30 June 2024 can qualify you for valuable tax deductions from broken items to faded directional signs. Ensure trades are scheduled to complete the necessary work or invoice you before the deadline.   
5. Superannuation Contributions: Superannuation plays a critical part when it comes to your future wealth planning decisions. The annual tax-deductible contribution cap stands at $30,000, covering contributions from wages (SGC), salary sacrifice, and personal tax-deductible contributions. Since July 1, 2018, individuals with total superannuation balances below $500,000 qualify for carry-forward or catch-up contributions.  There’re substantial tax saving opportunities on superannuation balances, particularly for those at the top marginal tax rate. We recommend finding out how these can affect you and your business.
6. Stage Three Tax Cuts: Further tax cuts will see a decrease in tax payable from next financial year. It’s therefore recommended to advance any tax deductions to the current financial year and in doing so you should receive a more substantial benefit.
7. Re-structuring : Every year before 30 June, it’s crucial to assess whether your self storage business operates under the most beneficial structure for tax minimisation, asset protection, and succession planning. Businesses evolve, and so should their operational frameworks.

In summary, prepare your business for the end of the financial year by reviewing financial records, ensuring compliance with tax regulations, and maximising deductions. Organise financial documents, reconcile accounts, and address any outstanding invoices or payments.

You’ll know you’re ahead of the game if you can start planning for the new financial year by setting financial goals, updating budgets, and implementing any necessary changes to improve efficiency and profitability.  Finally, remember to communicate your plans to the wider team, incorporating their input.  A team on the same page will ensure a seamless start (and hopefully a profitable end) to FY26.

Advice provided by Ewen Fletcher of Sharp Accounting PTY LTD
Website: sharpaccounting.com.au
Email: ewen@sharpac.au
Phone 03 5338 7100

Disclaimer: The above information is factual and may not consider your personal objectives, situation, or needs. Consult a qualified Accountant or Financial Planner before acting. Sharp Accounting Pty Ltd is not responsible for actions taken based on this advice.