To minimize your taxation liability for the current year, some options are:

  • Delay deriving assessable income (i.e. payment after 30 June can mean income is treated as next year’s)
  • Bring forward paying deductible expenses or losses
  • pay next year’s expenses (beware of the 12 Month Rule)
  • Move income to a taxpayer with a lower marginal tax rate (e.g. your Super Fund)
  • Negative Gearing strategies (extreme caution is required)
  • Depreciation Schedules for Rental Property investments
  • A reduced taxable income can also have the effect of allowing receipt of Government benefits which are “income” tested e.g. family allowance, child care benefit etc.

Note: 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.