The end of the 2016 financial year is almost here and it is important to ensure you are ready. Whether you are in business or an individual there are a number of tips that you can use to minimise your tax and ensure you are ready to start the new financial year on the right foot.
Individuals:
- Bring forward deductible expenses.
- Purchase any work related items under $300 to claim an immediate deduction.
- If you are considering attending a seminar or work related training, book and pay in this financial year to claim a deduction.
- Make a donation to a registered Charity.
- Motor Vehicle Logbook. The methods for claiming motor vehicles have changed this year allowing only two methods.
- Cents per km: You can claim a maximum of 5,00km at a rate of $0.66 for a maximum claim of $3,300 down from last years maximum claim of $3,850.
- Logbook: Ensure you have kept an accurate and complete logbook. It must be kept for at least 12 weeks and the period must start on or before 30 June 2016 to use this method. This will last for 5 years providing the nature of your work use does not change. Make sure you keep all of your receipts/invoices for your motor vehicle expenses.
Rental Properties
- Prepay interest on investments loans up to 12 months.
- Make repairs to the property before the end of the year to claim a deduction (be careful to understand the difference between capital expenses and repairs).
- Arrange for a depreciation report to allow you to claim the maximum amount of depreciation and building write offs.
Businesses
- Repay business expenses for an immediate deduction (e.g. insurances, interest, rent, subscriptions).
- If you have the cash flow and require new equipment, now is a great time to buy. If you are a small business entity and buy equipment including motor vehicles under $20,000 you may be entitled to claim an immediate deduction for the full price.
- Bring forward deductible expenses such as repairs and maintenance.
- Stock take: if you hold stock, now is a good time to identify any old or obsolete stock that can be written off.
- Write off any bad or unclimbable debts before 30 June 2016 so you don’t pay tax on them.
- If you have any large payments or contracts coming in, you may wish to defer your income to the next financial year to minimise your tax.
For more information or advice on any of these tips, do not hesitate to contact the office and one of the team will be happy to answer your questions.