End of Year Tax Planning
End of year tax planning is more simply than most people think. There are much more tax reduction opportunities available by effective tax planning at the start of the financial year and not the end. However, most people leave it to the last minute. We provide all our new clients a free tax planning session as soon as we engage them and monitor all our existing clients to identify any new tax strategies they should be adopting. However, below is a checklist of actions both an individual & business can do before the 30th June that will help.
- Pay any simple work related expenses before the 30th June you know you will require. For example, protective clothing, tools, stationery etc.
- Pay for any self-education expenses for the next semester before the 30th June.
- Individuals claiming car expenses can pay expenses such as much needed repairs & maintenance of the car prior to 30th June.
- Purchase any office equipment such as laptops, ipads, mobile phones etc. that are valued under $1,000.
- Obtain an income protection policy and pre-pay it for twelve months.
- Landlords can pay any upcoming bills such as repairs & maintenance before the 30th June.
- Landlords can pre-pay interest on their investment property for up to twelve months.
- Individual contractors can pay up to $35,000 in superannuation contributions if over 50 years of age and $30,000 if under 50 years of age before the 30th June.
- Do a quick stock take. If your stock is less than last year this will reduce your tax liability.
- Pay up to $35,000 in superannuation contributions if over 50 years of age and $30,000 if under 50 years of age before the 30th June.
- Order any items you know you will require if you run a creditors list as part of your bookkeeping
- Hold off any invoices you need to send to customers if you run a debtors list as part of your bookkeeping
- If you don’t run debtors or creditors you are considered a cash business so you will need pay any suppliers via EFT etc. before the 30th June.
- You can buy a cars or equipment under $20,000 before the 30th June that you will require and claim it as a tax deduction.
As stated the best tax strategies can be adopted at the start of the financial year and not at the end. Feel welcome to contact us for a free consultation.