Last Minute Things You Can Do To Minimize Your Tax

Tax Accountant Brisbane

Whether you’re a medical or dental practice, an engineering or building company or simply a salary/wage earner, the end of the tax year is fast approaching and there are some simple things you can do to hand over less money to the tax man post 30th June.

The following is not an exhaustive list but just some of the things you should be thinking of:

  • The now $30,000 instant asset write off for business we have discussed this topic before, but very briefly, businesses now with a 50M turnover can expense assets costing less than $30,000 net of GST purchased after 2/4/19.  The asset needs to be purchased and received/installed/operational by 30/6/19 to claim it this year.
  • Investment or business loans – you could look into prepaying up to 12 months interest in advance before 30/6/19 on any business, rental or investment loans.
  • Prepaying rent or expenses – similar to the above, ask your landlord whether he’s ok with you paying up to 12 months rent in advance.
  • Super – haven’t hit the maximum 25K concessional contribution limit for the 2019 year? Want to save tax by moving extra funds into super, paying only 15% tax?  You could think about making extra concessional super contributions to lower your personal taxable income, thereby saving personal tax.  Remember to get a possible deduction for super the payment into the fund must be processed by the fund prior to 30 June.
  • Defer income – you could look into holding off completing or invoicing some jobs until July.
  • CGT – If you’ve made a capital gain this year, are you holding any investments that are currently underwater? You might want to consider selling some loss performing investments to reduce that capital gain.  Note that a CGT event happens on the contract date, NOT the settlement date.
  • Donations – make tax deductible donations to registered charities
  • Stock – For those businesses with stock, prepare a stock take on the 30 June and you may find there is some lost, damaged or obsolete stock that can be written off.
  • Bad Debts Review Accounts Receivable and write off those debts that just aren’t going to be paid and unfortunately aren’t worth chasing.
  • FBT – look into salary sacrificing a motor vehicle or other allowable expenses. If you work for a government organization, hospital or charity, there’s even more of a chance of saving extra dollars due to their potential non-taxable status.  But even if you have your own Company or work for someone there’s a fair chance you may save tax, if not this year but next, by salary sacrificing things such as motor vehicles through work.

Please note that not all of the above may be available, merited or allowable to your individual or business circumstances so please call us on 07 3808 5144 to discuss before acting on any of these suggestions or book in for one of our free initial consultations.

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