Last minute Tax Saving tips

Tax scales

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

  1. 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.
  2. Hold back invoices to customers for work done or not quite completed – if possible.
  3. Prepay expenses or incur expenses and be invoiced prior to June 30 for items that you know you will need to spend next year.
  4. Take advantage of the $20,000 small business concessions for plant & equipment purchased before June 30.
  5. Write-off obsolete stock or bad debts.
  6. Maximise your own wage up to the tax-free thresholds

As an Individual

  1. Pay any work expenses before June 30. Remember these are deductible on a paid basis only.
  2. Check on whether you can pay extra super before June 30.
  3. 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.
  4. Consider any other prepayment of expenses that may be possible.
  5. Consider salary sacrificing into super. If you are in pension mode you can then draw it back tax free.

Happy tax saving!

For more specific and in-depth tax saving tips, please register for our webinar: ” How to legally minimise tax in 2017″ here

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