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Strategic Planning – Pre 30 June

May 25, 2021

As we are fast approaching the end of the financial year, it is important to consider what eligible tax planning initiatives may be available to you or your business.  There are a number of tax planning initiatives available to assist with managing or reducing tax, some of which are set out below:

 

  • Payment of work-related expenses including eligible self-education courses and materials, before 30 June 2021;
  • Prepayment of margin loan interest or interest on other business related loans;
  • Making donations to eligible deductible gift recipients. To maximise the tax benefit of making a donation, it is important that the recipient has been endorsed as a deductible gift recipient.
  • Repairs to your rental property;
  • In some cases, superannuation contributions can be tax deductible (subject to caps and limitations);
  • Salary sacrifice arrangements including salary sacrificed superannuation contributions;
  • Temporary full expensing of depreciating assets – eligible businesses with an aggregated turnover of less than $5 billion can deduct the business portion of the cost of eligible new depreciating assets. These assets must be first held and first used, or installed ready for use for a taxable purpose, between 7.30pm (AEDT) on 6 October 2020 until 30 June 2022.
  • Eligible corporate entities that previously had an income tax liability in a relevant year and have subsequently made taxable losses, can claim a refundable tax offset up to the amount of their previous income tax liabilities.
  • For employers, payment of superannuation guarantee amounts for employees before 30 June.

 

Some of these strategies may take time to understand, plan and implement. To stay ahead of the 30 June deadline, make sure you contact us to find out how we can help you to get the most out of this financial year.

 

While every effort has been made to provided valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.