Financials

End of Financial Year – Tax Mininization


Tax minimization

  • This information is GENERAL in nature and does not take into account your personal circumstances or/and needs.

As we approach the end of ther Financial year, it’s time we thought about mininizing our tax liabitilies. Here are some simple ideas to help you!!! Remember, Independent advice should be sought.

Strategy 1

  1. Make any purchase i.e equipement, stock prior to June 30
  2. Stock up on stationary
  3. Carry out any building / equipment repairs (Note “Repair” not “Improvement & Renovation”)
  4. Book and pay for conference/ trade show travel
  5. Pre pay interest on loans
  6. Pre pay  next year service providers
  7. Directors Fees and employee bonuses. Resolution by shareholders
  8. Pay Superannuation
  9. Gift and donations
  10. Write off “Bad Debts”
  11. Write off obsolete stock

Strategy 2

Own assets either as an individual or as a Trust (Not as a company)

This allows you to claim a 50% discount on any Capital Gains Tax.

Strategy 3

Set up a Company.

  1. Separate legal entity from you.
  2. Tax Rate of 30%

 

Set up a Trust

  1. Assets own by Trust or not your own and it cannot be taken from you.
  2. Able to spread income to family members

Strategy 4

  • Use Tax Offsets & Rebates
  1. Franking Credits
  2. Medical Expenses Offset
  3. Spouse Superannuation Contribution Rebate
  4. Foreign Income Tax Offset
  5. Mature Age (55+) Workers Tax Offset
  6. Entrepreneur Tax Offset

Strategy 5

Claim Car Expenses

  1. Pre pay Insurances and other costs
  2. Keep a log book for 12 weeks
  3. Book and pre pay vehicle service costs

Strategy 6

Salary Sacrifice into Superannuation

Put a portion of income into super

Strategy 7

Negative Gearing Property

  • Buy  new or nearly new – better depreciation
  • Interest only loan
  • Do tax variation
  • Seek advice from a professional

Remember, it ok to pay your share of tax, it keeps the country running!! But no more than you have to!!!

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