"Another tax year end is almost upon us!" Article by Tina Zawila

When this article goes to print on Tuesday, it will be exactly six weeks until 30 June.  Hasn’t that snuck up on all of us?!  NOW is definitely the time to think about tax planning, because in six short weeks it will be all too little, too late.

So this week, we share our top five tax planning strategies with you. 

1.       Defer Income
 If possible delay invoicing until after 30 June so that the income will be declared in your 2016 tax return instead of 2015.

2.       Bring Forward Expenses
Where possible, you may wish to bring forward any expenditure such as consumables, repairs and maintenance and other prepayments (for goods or services that will be used within the next 12 months).

3.       Write off any Bad Debts
Go through your list of clients/customers that owe you money, and consider the likelihood of you receiving payment.  If you are concerned that the debt is not going to be paid, then write it off in your accounting system before 30 June. 

4.       Superannuation
If you are self-employed consider maximising your contributions to superannuation.  This is one of the best tax deductions – spending money to save tax and provide for your own retirement.  Remember, you must actually contribute the funds before 30 June (you cannot claim a deduction for contributions made after 1 July, even if you say they related to the 2015 year.

5.       Capital expenditure
In light of the recent Federal Budget, if you are a small business (with turnover of less than $2million) you can now immediately claim a deduction (in full) for assets that are installed ready for use prior to 30 June, provided the asset costs less than $20,000.  This is a huge incentive to buy new plant and equipment which would normally only attract a pro-rated depreciation deduction.

These are very basic, generic, tax planning strategies.  As with all financial advice, it is absolutely vital that you consider your own individual circumstances and obtain advice tailored to you before taking any action.  Too often, we see the ineffective results of “self-tax planning”, so please call the professionals at Sothertons Gladstone today on 4972 1300, and we will help you minimise tax!