Tips On Income & Expenses Before 30/06/2008
Income
- Individuals should consider deferring income until after 30 June 2008 to take advantage of lower tax rates. Such as by deferring the sale of an asset until July, you can put off paying tax on the gain until at least another year.
- Self-employed, partnerships or trusts who are on an accruals basis should consider delaying the issue of an invoice and not invoicing until July, this will result in the income being derived in the following income year. Owners, partners and individual beneficiaries can then take advantage of lower tax rates in 2008.
Expenses
- For taxpayers who have elected to be included under STS or who are individuals who have incurred deductible non-business expenditure (e.g. Employees and individual investment and property owners there is a 12 month rule which operates to enable them to claim prepayments where:
- The payment is incurred for a period of service not exceeding 12 months into future, and
- The period within which that service will be provided ends in the next income year. (Prepayment expenses include lease expenses, insurance, interest, seminars booked in advance etc.)
- Ensure Super Guarantee obligations are met (9%). Ensure payment before 30th June 2007 to obtain tax deduction.
- Super Concessional (Deductible) limits $50,000
- Transitional Concessional (over 50’s till 2012) $100,000
- Non Concessional (non-deductible) $150,000 (Can do 3 years $150,000x3= $450,000 in one year)
- Consider donations to eligible charities.
- STS taxpayers take advantage to write off capital expenditure less $1000 and write off pool balance that has $1000 left over.
- Business taxpayers should consider bad debts and obsolete stock to be written off by the end of the income year.
- Directors’ fees and staff bonuses to obtain further deduction but these must be determined before the year-end.