Now is the time to start planning and reviewing your records to maximise your tax deductions for the 2017/18 financial year.
Here are our ten top tips for yearend tax planning for businesses and individuals:
Pay quarterly super
Super Guarantee (SG) contributions must be paid before 30 June to qualify for a tax deduction in the 2017-18 financial year. Consider bringing forward June quarter SG payments to increase the benefit.
Write-off bad debts
Review your debtor list to identify those who owe you money but are unlikely to pay.
Write-off bad debts before 30 June
– the debt must not be merely doubtful and must have been previously included as assessable income.
Small business entities may bring forward deductible expenses such as rent, repairs and office supplies, that cover a period of no more than 12 months.
Trading stock should be reviewed before 30 June to identify any obsolete, slow moving or damaged stock. Obsolete stock must be physically disposed of for income purposes to receive a deduction.
Businesses can benefit from deferring invoices until after 30 June. By delaying income, in effect you defer paying tax on that income for the financial year.
All of the contributions that have been recorded for your SMSF need to be deposited in the SMSF’s bank account by no later than 30 June 2018. This is especially important where members have reported concessional or nonconcessional
Consider selling loss-incurring assets, such as shares, to help offset your tax liability from any capital gains on other assets.
Trustees of discretionary trusts must make and document resolutions prior to 30 June 2018 regarding how trust income will be distributed among beneficiaries.
To obtain a deduction for selfeducation expenses, such as course fees, textbooks, stationery, etc., your study must either be work related or you receive a taxable bonded scholarship.
Home office expenses
Business owners operating from home can claim deductions for expenses such as room utilities, i.e., gas and electricity, business phone costs, motor vehicle expenses, depreciation and occupancy expenses, such as rent, mortgage interest, etc.
Talk to us TODAY before the 30 June 2018 deadline for assistance to reduce you tax! The team at Lee & Lee can help you with tax planning for 2018.
Susan Flux, Brisbane
Since that time I known Tony and his team at Lee and Lee, they have provided me with outstanding advice and services regarding my personal, family and especially my SMSF borrowing setup for wealth creation and tax reduction strategies that have since led to financial independence.
I now very clear and feel confident on my future financial goals and taxation strategies and know they can be achieved with Tony’s expert and professional help.
Shukri Barbara, Property Tax Specialists Sydney
Tony’s understanding of the business and tax environments, together with his experience and can do attitude enables him to deliver creative solutions outside the square as much as inside, A positive thinker I find Tony inspiring, guiding clients and associates to a prosperity mindset.
Tony has impressed me with his technical knowledge and execution. He works with honesty and integrity and is generous in his dealings.
John Mu, Internet Marketing Strategist Gold Coast
Tony Lee and his team at Lee & Lee is without a doubt Australia’s number one accounting firm.
Tony has the strategies which are helping me legally minimise tax. He has helped me in my personal development and wealth creation to build a multimillion dollar property portfolio.