If crunching numbers isn’t your strength or your favourite pastime activity, keep calm with the expertise advice that Rethink Financial shares in the lead up to June 30.
They’ve compiled these tips which may reduce your tax bill, and keep you financially collected at tax time.
To make the most out of your tax return, be sure to keep these tips in mind:
Did you know:
- Maximum tax deductible superannuation contributions are $30,000 (under age 50) and $35,000 (age 50+). This limit will reduce to $25,000 in future tax years.
- Trading stock can be valued at either cost price, market selling value or replacement value. This method can change each each and can be different for different items of trading stock.
- Companies that qualify as small business entities (turnover of less than $2m) are taxed at the reduced rate of 28.5%. This reduced tax rate is also available to individuals who meet the criteria
- The limits for non tax deductible superannuation contributions will be reduced from the next financial year. So you will need to make these contributions by 30 June 2017 if you want to take advantage of the higher limits in place at the moment ($180,000 per year per person).
- Certain low income earners (under $51,021) may receive a government co-contributions for personal superannuation contributions
- Your children can be employed within your business and paid a wage, as long as;
- They are of an age that they can work
- They can actually work in your type of iness
- The amount they are paid is reasonable.
Tax deductible expenditure that you can make before 30 June which brings you future benefits or income, are a great idea. Such expenditure includes repairs, depreciating assets up to $20,000, training, advertising, coaching and professional advice. Many of these can be purchased through Bartercard
This is general advice only – please seek specific advice for your own circumstances from your own professional advisor.
Further tips from Bartercard to stay on top at EOFY:
- Seek advice from start-up
Managing your finances from day one (or from July 1) and setting up the right structures to keep the bookkeeping and accounting side of your business in shape will equate to less stress at tax time.
- Know your finances inside-out
Even if you aren’t mathematically minded, understanding your finances inside-out instead of handing them entirely over to your bookkeeper or accountant will not only assist you at tax time, but help you make better business decisions year round. It’s worth investing the extra time with your bookkeeper and accountant.
- Lose the paper
If you have years of receipts crammed into shoe boxes, it’s only likely to lead to stress. Keep your receipts organised and tidy instead of facing the task of sorting at tax time. A tip is to take photos of receipts and file them digitally on a regular basis.
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