"Hurry! 30 June is fast approaching" Article by Tina Zawila

As we approach 30 June, many business owners are looking for last minute tax minimisation strategies, and time is quickly running out.  Obviously, your own particular circumstances will be key to determining what strategies will benefit you, however, in this article we will discuss some general strategies that you may wish to discuss further with your financial advisor.

For businesses:

1. If possible, defer business income until after 30 June 2013, particularly if you expect that your income will be lower in 2013/14 than in 2012/13.
2. Ensure that you have written off any bad debts from your Accounts Receivable list before 30 June in order to claim the deduction in the 2013 year.
3. To obtain a deduction for employer or self-employed superannuation contributions, they must be paid to, and received by, the super fund before 30 June and must be within the contributions cap (generally $25,000 per individual).
4. Small businesses (with turnover less than $2million) can claim expenses prepaid up to 12 months in advance, for larger businesses, this is generally limited to expenses below $1,000.
5. Do a stocktake to determine the value of stock on hand as at 30 June.   Stock should be valued at the lower of cost or market selling value.  Remember, the greater your stock on hand, the greater your profit.

For individuals:

1. If you expect lower income in 2013/14 due to retirement or any other reason, consider deferring income until after 1 July when you may be in a lower tax bracket.
2. Consider realising capital losses if you have already realised capital gains on other assets during 2012/13.  Conversely, consider realising capital gains if you have unrecouped capital losses, or you expect substantially higher income next year.
3. Consider making tax deductible donations to your favourite charities (tax deductible gift recipients).

Have you considered utilising any of these strategies?

Do you need help implementing them?

Unsure if you have seen all the possible savings?

For advice to align your specific circumstances with these tax minimization strategies please contact our professional team at Sothertons on (07) 4972 1300.