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. DOWNLOAD CHECKLIST HERE
For example:
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
If you would like to stay updated throughout the year and receive the latest information on tax changes and how they can benefit you and your business please feel free to subscribe to our newsletter on the right.