Taxland has prepared a basic end of year checklist for wage and salary earners. In these PDF’s we help to outline some of the methods of reducing your taxable income as well as provide a checklist of what you need in order to better prepare with your accountant.
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