The end of the financial year is approaching and now is certainly a great time to take steps to reduce your tax bill and put yourself in the best possible position. All too often tax planning is left to the last minute which makes it difficult to minimise tax, so consider the below tips for your personal tax, business or superannuation fund.
- Prepay your expenses: By prepaying 12 months of tax-deductible expenses, you can bring the deduction forward into the current financial year. A good example of this is income protection insurance but other options are prepaying interest on margin loans or investment loans.
- Delay income: If you are able to, try to defer income until after June 30 to avoid paying tax this financial year. As an example this may be done by reviewing term deposit maturity dates or legitimately deferring income by holding off issuing invoices until July 1, if you run a small business.
- Charity: If you are thinking of donating money, you may be able to receive a tax deduction for gifts and receive that deduction this financial year.
- Repairs and Maintenance: If you hold an investment property, consider doing minor repairs and maintenance prior to 30 June.
And finally, if you need any further advice on how to position yourself as effectively as possible for the upcoming ITR season, please don’t hesitate to call Dino Cellini on 8696 4166 or email to email@example.com