Last Minute things to attend to minimise tax – or create refunds!

Peter Cramer
  1. Businesses – pay super SG obligations before 30 June to get a tax deduction this year.
  2. Individuals – buy your equipment, computers, printers, devices before June 30 to get a tax deduction – 100% if less than $300 per item.
  3. Businesses – buy your equipment, plant, computers etc. before June 30 to get a tax deduction – 100% if less than $1000 per item.  (Maybe even up to $6,500 per item if the rules don’t change as planned).
  4. Do you have rental properties?  Pay any expenses before June 30 – bring forward repairs or replacements so as to get a deduction this year.  Make sure you are claiming Capital Allowances on the property – see your accountant to confirm.
    Is your rental property in joint names? – Can claim outright depreciation items up to $600 (i.e. $300 share each).
  5. SMSF’s in pension phase – make sure you take out at least the minimum pensions to guarantee tax free income for your super fund.
  6. Self-employed (i.e. no wages income) – make sure you contribute to your super to be able to claim a tax deduction this year – up to $35,000 for people aged 60 and $25,000 for people less than 60.
  7. Trusts:  Meetings to decide how to distribute the income for 2014 must be held no later than 30 June – and Minutes signed to support these decisions shortly thereafter.
  8. Businesses – got any Bad Debts?  Make sure you physically write them off in the books of account of your business before 30 June in order to get a tax write-off.
  9. Use depreciation assets to earn income?  Are they worn out or obsolete?  A write off of remaining value may be possible for tax – review now.
  10. Individuals with large taxable income and no health cover?  You might be paying an extra 1% tax – so consider getting Private Health Cover now so you won’t pay the extra tax next year.
  11. Start a discipline of keeping receipts for all the little expenses you incur over the year – and keep them organised so you can prove your tax claims for next year.
  12. Get your documentary evidence of all your work related deductions ready now so you can claim lots of tax deductions!  “Expenses incurred in gaining or producing your assessable income” are what you are looking to provide evidence of.
  13. Are there any expenses you can pre-pay in June?  Interest on business or rental property loans?  General business expenses?  Get a tax deduction this year – Pay them early!
  14. On wages? – talk to you employer about salary sacrificing your wages into super or other tax effective payments to reduce your tax bill for next year.  Speak to your accountant for advice.
  15. In business?  Have children nearing 18 years of age? Expanding?  Making larger profits than normal?  New family members?  Marriages, divorces? – Might be time to review your structure – July 1 is a good time to make changes.
  16. Planning on paying yourself a year end bonus from your company?  Talk to us about doing this to get a deduction but only pay the tax up to 3 months later.
  17. Sold any shares or assets for a profit this year?  Consider selling any loss making shares or assets to offset those gains.
  18. Paying interest to overseas non-residents?  Make sure you report in BAS and withhold the correct withholding tax – and claim the tax deduction.
  19. Will your next year’s salary be over $180,000?  Act now to FBT package the salary above $180k into fringe benefits to avoid the extra 2% tax due to come in on 1/7/14.  This is effective up to 31/3/15.
  20. Planning the sale of any significant business assets in the next 12 months?  Very important to plan and discuss with us – may be major capital gains tax issues to work through.  Most times planning well in advance is critical!
  21. Plan on making donations?  Ensure they are paid from a tax paying entity to get value for the deduction.
  22. Has your Company loaned money to you or family or trusts?  Has your accountant advised you that you have a Div 7A loan problem?  You must meet the principal and interest loan repayment obligations before 30 June.
  23. Make sure you pay PAYG withholding and SG obligations on time so as to avoid penalties!

Finally – Happy New Financial year for next week!  The best time to plan to reduce tax is now.  Remember, tax is a necessary expense of doing business, but one which should be minimised.

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