Getting Ready for Tax Time – Legally Minimise Your Tax Payable
30 June is fast approaching and that means tax time! Being prepared prior to the end of financial year is crucial in managing your taxation affairs and ensuring you legitimately minimise the amount of tax payable.
Here are some of the issues you may want to consider:
Delay deriving assessable income.
- Timing of Derivation of Income
- Timing of Raising a Bill for incomplete work (Businesses)
Bring forward incurring deductible expenses or losses.
- Superannuation contributions (conditions apply).
- Capital gains/losses – timing of transactions.
- Stock valuation options.
- Bad debt write-offs.
- Paying the Compulsory Employee Super payment before 30 June.
- Paying the last week/month of the year’s wages/bonuses before 30 June.
Pre-pay (up to 13 months) next year’s expenses.
- In certain circumstances expenses paid for before they are due will be tax deductible when they are paid, e.g. Insurance premiums, membership of organisations, travel, advertising and interest.
Shift income to a taxpayer with a lower marginal tax rate (eg your super fund).
Negative gearing strategies (extreme caution is required).
Caution! The circumstances under which the above principles can be applied are limited by certain conditions placed on taxpayers by the legislation e.g. not all pre-payments will be allowable as tax deductions.
OTHER YEAR END ISSUES
If you have started an account based pension:
- Ensure that you have withdrawn the annual minimum required.
If you are in business or earn your income through a company or a trust
- Award Superannuation and/or Superannuation Guarantee Charge:
- The deadline for employers to pay superannuation guarantee contributions for the 2012/13 financial year is the 28 July 2013. However if you want a tax deduction in the 2012/13 year you must pay it by 30 June 2013.
- Is your Loan Account in your business in debit? Will the interest be tax deductible? Will your drawings be considered a deemed dividend? Have you paid at least the annual minimum payment required for your Div7A loan?
For advice tailored to your situation please contact one of our consultants
on 07 41518898.