Please find following a few top tax tips to assist you to maximise your deductions for
the coming end of financial year and take advantage of any tax rebates available:
Tip 1 : Now is the time to Maximise your Deductions
You’ve heard it before – but $1000 today is worth more than $1000 in a year’s time.
So as is the case each and every June, consider bringing forward any deductible
expenditure prior to the end of the financial year to minimise taxable income. This can apply to prepaid service agreements where they apply to rental properties e.g. maintenance contracts or even prepaying interest on a loan used to purchase an income producing asset – like shares or investment properties. Always make sure you have invoices/receipts for your expenses or contact your service providers to obtain them. Try and sort your records in time for the end of the year to ensure you get your refund as quickly as possible. If in doubt, give your accountant a quick call prior to June 30 – it’s too late afterwards!
Tip 2 : Consider your Insurance situation
Personal insurances like Income protection insurance, business expenses and even landlord’s insurance for property investors can be prepaid. Income protection
insurance is tax deductible to individuals and life insurance is tax deductible
to superannuation funds and some self-employed persons depending on the
structure. Give me a call if you want to ensure your insurances are structured in the most tax effective manner. Have you got your insurance sorted?
Tip 3 : Spouse Superannuation Injection
Workers should consider making a super contribution on behalf of their spouse if the
spouse earns less than $13,800. A rebate of up to $540 (18%) is available for contributions up to $3,000, which is beneficial if you have a low-income or non-working spouse below age 65. It builds up their retirement savings, and reduces your tax. That’s a win-win!
Tip 4 : Superannuation Co-Contributions
Get the government to help fund your superannuation savings. You
may be eligible for the super co-contribution if all of the following
- you make an eligible personal super contribution by during the income year into a complying super fund or RSA and don’t claim a deduction for it
- your total income (minus any allowable business deductions) for
the income year is less than the higher income threshold $61,920. (The maximum entitlement is $1,000. However, you must reduce this by 3.333 cents for every dollar your total income, less allowable business deductions, is over $31,920, up to $61,920.) Those earning under $31,920 are generally able to claim the full $1,000.
- 10% or more of your total income comes from eligible employment-related activities, carrying on a business or a combination of both you are less than 71 years old at the end of the income year
- you are not the holder of a temporary visa at any time during the income year, unless you are a New Zealand citizen or holder of a prescribed visa
- you must lodge your income tax return for the relevant income year.
I have also had a few calls regarding the new Queensland Building Boost Grant of $10,000. Here is link to further information : http://www.budget.qld.gov.au/current-budget/tax-reform/faqs.shtml