As we approach the end of the 2014/15 financial year, this is the PERFECT time to have Arrive Accountants review the strategies you can use to safely minimise y…our tax. Here are some key items to consider….
- Concessional Superannuation Cap
The current concessional superannuation cap for 2015 is $30,000 if you are under 49, and $35,000 if you are 50 or over. Make additional contributions if you are under the contributions cap as you can then claim a deduction. Don’t go over this limit or you will pay more tax however! Also be aware that to claim a tax deduction in the 2015 financial year, the super fund MUST receive your contribution before 30 June 2015.
- Tools of Trade
The purchase of new Tools of Trade for business owners and employees can be an effective way to buy equipment with a tax benefit. This includes handheld IT technology, computer software, notebooks, personal electronic organisers, digital cameras, and mobile phones. Buy these items before 30 June.
- Defer Base Income
Where practical, deferring income and/or receiving cash or debtor payments after 30 June is an effective way to minimize tax.
- Bring Forward Expenses
Any home office consumable items purchased before 30 June are deductible into the 14/15 financial year, including stationery, printing, office and computer supplies. Make payments for repairs and maintenance (business, rental property) before 30 June.
- Defer Investment Income & Capital Gains
If practical, arrange for the receipt of Investment Income (e.g. interest on term deposits, sale of Capital Gains assets) to occur after 30 June.
Capital Gains outcomes are determined by the date on which a contract is entered into. If you are selling shares, business or property, delay signing the contract until the new financial year.
- Motor Vehicle Log Book
Ensure that you have kept an accurate and complete motor vehicle log book for at least a 12-week period. The start date for the 12-week period must be on or before 30 June. Make a record of your odometer, and keep all receipts/invoices for motor vehicle expenses.
- Property Depreciation
If you own a rental property and haven’t already done so, arrange for the preparation of a property depreciation report to allow you to claim the maximum amount of depreciation and building write-off deductions on your rental property.
Call Dino Cellini at Arrive Accountants to discuss these and a host of other strategies that will help you to pay less tax, and at the same time be fully compliant. Dino can be contacted on 8696 4166, or by email at firstname.lastname@example.org