TAX TIPS AND WEALTH STRATEGIES
These can be used at any time during the year, the most important thing is that they are appropriate to your circumstances, your objectives and your goals!

5 OF THE BEST STRATEGIES FOR EVERYONE

1. PAY LESS CAPITAL TAX!
A capital loss will reduce a capital gain, consider selling your under performing investments. Apply the 50% discount if the asset has been held for more than 12 months

2. BOOST SUPER, SAVE TAX AND CREATE WEALTH! 
Make super contributions up to the contributions caps (25K this year).

  • Personal deductible super contributions are a more flexible deduction.
  • Government superannuation Co-contribution
  • Superannuation balance splitting
  • Spouse super contributions (up to $540 tax rebate for super paid for low income spouse.

3. THE POPULAR DEDUCTIONS!
Claim Motor vehicle deductions under a log book or kilometre diary.

  • Negative gearing boosted with depreciation and/or interest prepayment.
  • Prepayment of deductible expenses for up to 12 months in advance. Think insurances, subscriptions, software ect.

4. THE MOST POWERFUL DEDUCTIONS!
Immediate asset write off $20,000 for “small businesses” is still available and will be next year.
Unfortunately individuals only get a small asset acquisition immediate write off for <$300.

5. THE OLD FAVOURITES!

  • Income split to lower income spouse.
  • Repay non-deductible debt first.
  • Bringing forward of deductions and prepaying or deferring income.

OTHER MATTERS TO BE AWARE OF: 

  • Look out for OSR issues like Payroll and Land tax.
  • Repay Div 7A loans or make your loan repayment. Don’t forget to implement a written loan agreement if needed.
  • Trust distributions resolution must be effective as at 30 June 2018.

DON’T FORGET!

  • Think about your long term plan and make decisions with this in mind.
  • The use of the correct entity is crucial, now and in the future.
  • Lodge your tax return early if expecting a refund and invest the money or repay non deductible debt

There are many more deductions and rebates available depending on your situation

  • Beware of Personal Service Income (psi) issues
  • Beware of Part IVA consequences of acting for solely a tax benefit
  • Beware of acting with out advice

Please call us if you would like to discuss.
Adrian Chaudhary