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SEVEN TAX TIPS FOR 30 JUNE

As we get closer to 30 June, we‘re always looking for tips to ensure that we pay the taxman as little as possible.

Here are SEVEN tips from our Executive Chairman Warren Black to help you lower your tax for 30 June:

1. Prepay expenses. If you have any expenses for the next financial year, prepay them before 30 June. For example, see if you can prepay the interest on your share loan or investment property loan for the next 12 months.

2. Put money into superannuation. If you are over 50 (or even under 50, but you are looking long term), and you are self employed, make a deductible contribution into superannuation. You can make up to $100,000 if you are over 50, or $50,000 if you are under 50.

3. Get your salary sacrifice agreements in place for next financial year. The ATO says that you cannot salary sacrifice income from the past. You can only salary sacrifice income you earn in future. Make sure that you and your employer make your salary sacrifice agreement for the next financial year BEFORE 30 June. You may ensure, for example, that any bonus you receive from your employer can be salary sacrificed into superannuation and pay only 15% tax.

4. Realise capital losses. If you have a big capital gain from selling an investment property or business, and you have losses on paper with your share portfolio, consider selling your shares before 30 June and getting the loss, and then offsetting the loss against your gain. You can always buy the shares back later on (although be careful, you should get some advice before doing this as the ATO have stated that they will look more closely at this arrangement).

5. Government superannuation contributions for low income earners. If you are an employee earning less than $58,000 per annum, and you make an AFTER-TAX contribution of $1,000 into superannuation, the government will also contribute an extra $1,500 into superannuation for you.

6. Rental property costs. If you have repairs to do on your rental property, pay for them before 30 June and ensure that you get the tax deduction this financial year!

7. Tax effective schemes. Be VERY cautious about any tax effective scheme promoted to you. If it sounds too good to be true, it probably is. That said, there are some very good tax effective opportunities available, just make sure that it is either ATO approved through an ATO Product Ruling or that the opportunity is a genuine investment opportunity that can make money for you INDEPENDENTLY of any tax advantage. We can speak to you more about this, as we have access to
some very good tax effective opportunities.

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