Last-Minute Tax Saving Tips
Here is a brief list of things you can do before the end of June to reduce your tax bill this financial year.
As a Business
- Maximise your superannuation tax deductions for both your staff and yourself:
- For the directors and owners pay up to the maximum cap ($30,000 or $35,000 depending on age).
- For staff pay the June 2017 super before 30th You only get a tax deduction for super when it is paid. Calculate the super in advance and pay it on 28th or 29th June so that you get a tax deduction in the current year.
- Hold back invoices to customers for work done or not quite completed – if possible.
- Prepay expenses or incur expenses and be invoiced prior to June 30 for items that you know you will need to spend next year.
- Take advantage of the $20,000 small business concessions for plant & equipment purchased before June 30.
- Write-off obsolete stock or bad debts.
- Maximise your own wage up to the tax-free thresholds
As an Individual
- Pay any work expenses before June 30. Remember these are deductible on a paid basis only.
- Check on whether you can pay extra super before June 30.
- If you own a rental property consider prepaying the 2018 interest before June 30. That way you will get a tax deduction in this year.
- Consider any other prepayment of expenses that may be possible.
- Consider salary sacrificing into super. If you are in pension mode you can then draw it back tax free.
Happy tax saving!