|
With 30 June
fast approaching check out the Top Ten
Tax Tips below to see
if you could benefit from one
of these end of financial year strategies.
1. Government Co-contribution - if you aren't familiar with this
scheme and how you can benefit from it, consider viewing a
short video I have produced
explaining the Government Co-contribution. There is also a calculator to determine how
much you should contribute to superannuation to acheive optimum benefit
from the scheme. The www.mastermymoney.com.au website referred
to in the video will be launched in the next couple of months but
is not yet available.
2. Spouse Contribution - If your spouse earns less than $10,800 you
could benefit by contributing up to $3,000 into your spouses
superannuation fund to and receive a $540 rebate.
A rebate means
you get to keep $540 that
you would have otherwise paid in tax.
3. Deductible
contribution - if you are eligible,
offset a capital
gain you may have incurred with
a deductible contribution to your superannuation fund.
4. Pre pay interest
- I am not a big fan of margin loans but if you
do borrow money to invest you could consider paying the next
12 months interest expense prior to the 30th of June to receive
the tax benefit this financial year rather than having to wait
until after the
next financial year.
5. Work related expenses - pay for any work related expenses
that may be falling due prior to 30 June to claim the tax
deduction in this years tax return. Work related expenses may
include items such as subscriptions to associations, seminars,
conferences, education workshops,
books, journals, computers, software and protective clothing.
6. Income Protection Insurance Premium
- You can
pay your Income Protection Insurance Policy Premium before June
30th to benefit from the tax deduction this financial year rather
than waiting more than 12 months to receive the benefit. A
tax deduction reduces your taxable income by the amount of the
deduction. It is not as beneficial
as a rebate.
7. Donate - to tax deductible
organisations prior to
the 30 June and reduce the tax you pay
this financial year. This not only lowers the tax you pay
by reducing your taxable income but
also benefits the organisation you give to.
8. Offset capital gains with losses
or vice versa
- if you have capital gains or capital losses consider any
assets sales that you could complete prior to 30 June to
offset the losses or gains depending
on which is more beneficial to you.
9. Self
employed - schedule invoices
to be due after the 30th June and consider the Simplified Tax System
(STS). STS allows immediate
write-offs for a plant costing up to $1000 (including GST)
and the use of pooling of assets over
$1000 to gain accelerated rates of depreciation.
10. Start planning for
next year now - tax planning isn't really about what you
can do just before 30 June each year. The best approach is to
make your plans at the start of the financial year to make sure you
take
advantage of
all of the strategies available to
you, including strategies such as salary sacrificing.
Whether it is
year end tax planning, giving decisions, estate planning or any
other financial decision it is important that the tail doesn’t wag
the dog i.e. you first need to decide what your goals are and then
use the best techniques to
achieve them
rather than making ad hoc decisions
based on techniques for reducing income tax.
If you know someone who could benefit from these Top
Ten Tax Tips you can
forward it
to up to 5 of your
friends at a time by clicking here.
Wishing you a very Happy New Financial Year.
Warm
regards
Gavin Martin
Back
This
newsletter does not take into account the personal objectives,
financial situation or needs of any person. You should consider the
appropriateness of the information having regard to your own
objectives, financial situation and needs and obtain professional
financial advice prior to making any decision.
|
