If not yet retired, earnings on superannuation investments are taxed at 15%. It is worth considering making super contributions as part of your tax strategy. Not only will you be saving tax you will also be saving for your retirement.
Salary sacrifice contributions
If your marginal tax rate exceeds fifteen percent, making contributions to your superannuation fund through a salary sacrifice arrangement will reduce your overall tax paid.
Education tax refund
Remember to keep all receipts and documents related to your children’s educational expenses, such as text books,stationery, internet,computer software for educational use and computer repairs.You may get 50% of the cost of these as a rebate in your tax return.
If a business has a turnover of less than $2 million, then it may be entitled to an immediate tax deduction for pre-payment of expenses. This only applies if the expense covered a period of 12 months or less.
If there are bad debts, they must be physically written off the books by the 30 June. To make sure that the debt qualifies as a bad debt, it must be previously brought to account as assessable income.
If you have borrowed money from your company, the loan must be repaid or a loan agreement should be signed, both before 30 June . Also ensure you have met the minimum repayments on any existing loan agreements.
Deferral of income
Income can be deferred to next financial year, if entitlement to income has not yet occurred. Not yet completing the work or issuing the invoice after the end of the month, changes your entitlement to the income.This strategy may reduce tax payable for this year.
Make sure that superannuation entitlements are paid for employees before 30 June. This will ensure they are deductible in this financial year.
Dispose of non-performing investments
Remember that capital losses can be offset against capital gains. Review assets and dispose of any non-performing investments to take advantage of the capital loss.
All stock should be reviewed during the end of year stock-take and choices made in relation to its value as a tax and commercial asset. Consider the age of the items, likelihood of future sales and their scrap value. Remember to keep and file all relevant documents.