Tax Strategies

Budget 2017 Note 1: Property investors – Reduced Depreciation Deductions

Property investors to lose some tax depreciation deductions benefit In the May 2017 Budget, the Government announced that for existing properties bought after 9 May 2017, removable fixtures and fittings depreciation deductions are limited to only those expenses directly incurred by investors. This measure is yet to be legislated by Parliament. Removable fixtures and fittings items […]

Tax Strategy 1: Minimise Capital Gains Tax – sign sale contracts in July

Did you know that a taxable capital gain is determined at the time a contract is entered into rather than settlement date? If you’re considering selling shares or property you may want to delay signing the contract until 1 July 2017.

Tax Strategy 2: Gain advantages with a Discretionary (Family) Trust

A Discretionary (Family) Trust structure will protect your assets from any future claims by creditors that may be made against you as an individual. Setting up a Discretionary Trust offers you flexibility to distribute income and capital gains to others such as your spouse and children over 18.

Tax Strategy 3: Save tax by paying super before 30 June 2017

Concessional contributions are payments that are taxed in your super fund at a ‘concessional’ rate of 15%. Depending on your taxable income, your tax benefit could be as high as 49%. For a $30,000 contribution, the net tax saving could reach $10,200!

Tax Strategy 4: Save tax by deducting assets of less than $20k

If your business turnover is less than $2 million per year, you can write off the purchase price of assets costing less than $20,000 immediately, rather than depreciating these assets at standard rates.

Tax Strategy 5: Save tax by bringing forward your deductions and expenses

Bringing forward deductions and utilising them before 30 June 2017 will reduce your tax this year. You are able to claim a full deduction in the year of payment where the expense covers a period of no more than 12 months.

Tax Strategy 6: Save tax on expenses (even if unpaid by June 30th)

Did you know that you’re entitled to an immediate deduction for certain expenses that have been ‘incurred’ even if they haven’t been paid by 30 June? These include; salary and wages; directors fees; and staff bonuses and commissions.