Tax

End of Financial Year Tax Planning Tips for Individuals, Investors and Trusts

  • Pay any super contributions intended for the 2018 year by 26 June (so they are cleared to the superfund account by Friday 29 June). You will need to subtract from the threshold any employer superannuation (including super guarantee) that will have been physically paid to your fund in the 2018 Financial Year when calculating the remaining concessional cap of $25,000.
  • From 1 July 2017 you are able to claim a full deduction for personal super contributions you make to super, within the concessional cap of $25,000, and you do not need to do this through salary sacrifice, even if you receive employment income.
  • Make sure your motor vehicle log books or work related travel diary are up to date to substantiate any work related expense deductions. If you claim a tax deduction for work related motor vehicle expenses, you should note your odometer records at 30 June each year so that you can calculate the kilometres travelled. Maintaining a logbook of work related use of your vehicle will usually maximise the tax deduction you can claim. If your current logbook is 5 years old you will need a new one for a continuous 12 week period.
  • Ensure you have provided your accountant with details of the expected 2018 income and gains for your Trust and for any intended beneficiaries so that you can determine the most tax effective distribution of 2018 Trust income and gains.

Recent changes to legislation

  • Deductions for travel expenses relating to inspecting, maintaining or collecting rent for residential rental properties are not allowed from 1 July 2017.
  • Plant and equipment depreciation deductions are limited to outlays actually incurred by investors on residential real estate properties from 1 July 2017.
  • From 9 May 2017 the CGT main residence exemption was removed for foreign and temporary residents. Properties held prior to this date will not be subject to the removal of the exemption for disposals occurring on or before 30 June 2019.
  • Changes to Small Business CGT Concessions for taxpayers disposing of shares in companies or units in fixed trusts, introducing additional basic conditions to apply from 1 July 2017, if passed into law.

If you have any questions, please do not hesitate to contact Heather Moore on (08) 9254 6854.