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Published on June 6, 2019. Published by R J Sanderson And Associates Pty Ltd.

With the end of the financial year approaching, it’s a great time to make smart decisions about your finances. Taking action before 30 June can open up more opportunities for you. We know that there isn’t a one-size-fits-all solution to accounting, wealth management and business growth. So we’ve outlined some tax-effective strategies that you may benefit from. We can help you find what strategies are right for you and/or your business.

IndividualTax Tips

Strategies for individuals

Maximize deductions!
But remember they must be substantiated…

Motor vehicles
2 methods available

  • cents per km (up to max 5,000kms)
  • log book method (no limit)

New rate for c/km method is now 68 cents per kilometer (was 66 c/km) – no need to log all trips but must be reasonable calculation.
If using a log book – make sure you have one as well as receipts & invoices for all running costs.
If using log book – make sure receipts & invoices for all running costs are also kept.

Travel from home to work & back not allowed unless –

  • transporting bulky equipment,
  • traveling to an abnormal workplace or
  • where home is the work base.

Home office

Home office
Working from home vs. home as principal place of business. No dedicated work area = no deduction.
New rate of 52 cents per hour (up from 45). Phone & internet expenses treated separately.

Tools & equipment
100{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} deductible for items up to $300. Depreciate items costing over $300 (based on reasonable life).
Must apportion between private and work use for those items with multi/dual use (i.e. computers, laptops, telephones, etc.)

Rental properties

Rental properties
Don’t forget to claim depreciation and building write off.
Must be based on surveyor’s report. Cost of report is tax deductible.

Prepayment of expenses
Individuals can bring forward purchases prior to 30 June.
For example paying for expenses due next year prior to 30 June such as memberships, subscriptions, tools under $300, office supplies, interest expense, & income protection insurance.

Division 293 threshold
Applies to those with an income of over $250,000.
Levies an additional 15{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} tax on concessional super contributions – effectively increases tax on contributions to 30{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} (versus the normal rate of 15{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357}).
Watch for one off events such as terminations or capital gains as these may go over the $250,000 threshold.

Maximizing salary sacrifice when employed by FBT Exempt employer.
Salary sacrifice up to $30,000 for public benevolent institution or health promotion charities.
Salary sacrifice up to $17,000 for public and not for profit hospitals or public ambulance services.
Other NFP institutions may be eligible for rebates (check eligibility with your employer).