H&R BLOCK the best people in tax. That’s our claim.
NEWS RELEASE
8th June 2008
What can you do to maximise your tax position for this
financial year
There are a number of things taxpayers can do to improve this year’s tax position, the
list below details those things. The action must be taken prior to the 30th June 2008.
Individual/Non Business Taxpayers
1.
Defer Income where Possible
If you are due a end of year bonus, with the large tax cuts due 1st July,
it is certainly worthwhile deferring these bonuses, if possible, to the
next financial year.
2.
Review your records, do you have the necessary receipts and records to
maximise the tax deductions you are entitled to
a. Motor Vehicle expenses
- If you travel more than 5000 kilometres in the tax year you
need to keep a log book to maximise your claim. This needs to be
kept for a minimum of 90 days.
- If you travel less than 5000 kilometres you can use the cents per
kilometre method of claim, you just need to ensure you have records
to estimate the number of kilometres you have travelled
b. Home Office Expenses
Ensure that if you have the necessary records to enable claims for these
expenses. Business/Private logs for Computers, Home Phone, Mobile Phone,
time spent in the home office for work related activities.
c. Other Work Related Expenses
Make sure you have the receipts and invoices for any purchases you have
made, details of professional association expenses and Union memberships.
Tools and equipment purchases that you have used for work. Professional
subscriptions are also deductible.
d. Medical Expenses
If you or you family members need to have some medical work or procedure
done, it is worthwhile trying to bunch them to one financial year as you are
entitled to a rebate of 20c in the dollar for every dollar spent over $1500.
e. Self Education Expenses
If you have undertaken any self education that helps you do your current job you
are entitled to claim a tax deduction for those expenses. Fees ( other than
HECS), books stationary travel are all deductible, you juts need to ensure you
have the records to substantiate the claims
2. Superannuation
a. Contributions on behalf of spouse
This is subject to income limit of $13,800 but a rebate of $540 is available to
those that Qualify. A full rebate will apply if the taxable income of the spouse
is below $10,801 and it is reduced and cuts out at a taxable income of $13,800
b. Co Contribution
If you have taxable income below $28,980 you can make a contribution up
to $1500 a year and the Government will match that contribution, with a
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tax accountants
H&R BLOCK the best people in tax. That’s our claim.
payment to your super fund. The amount of the Government contribution
cuts out at $59,800
c. Consider Salary Sacrificing some of your salary into super
This is a very tax effective way of maximising your retirement income.
3. Offset capital gains against capital losses
If you have a capital gain in this financial year, look to your other investments to
see if it is worthwhile to realise a Capital loss, to offset the Capital gain.
4. Make any Tax Deductible donations
Prepayment rules do not apply to these deductions
5. Salary packaging
If your employer will allow, see if you can salary sacrifice some of your income, such
as superannuation, Motor Care, particularly if you are earning on the top tax rate
6. Maximise medical expenses
If you or you family members need to have some medical work or procedure done, it
is worthwhile trying to bunch them to one financial year as you are entitled to a
rebate of 20c in the dollar for every dollar spent over $1500.
Small Business Owners
1. Defer Income
To utilise this strategy of delaying income, you need to check what income you are
Likely to receive in the last quarter, and if appropriate delay that income to the
next financial year.
The tax cuts that commence the 1st July make this a more attractive option
2. Accelerate deductions
Carry out any repairs to equipment and premises prior to June 30
th.
Prepay expenses, where allowable
Write off bad debts
Manage your Trading Stock
Do an advanced purchase of business consumerables
Make any Tax Deductible donations
Income Protection
3. Superannuation
Superannuation deduction for self employed business people
Contributions on behalf of spouse
Co Contribution
4. Offset capital gains against capital losses
If you have a capital gain in this financial year, look to your other investments
to see if it is worthwhile to realise a Capital loss, to offset the gain against.
5. Review Asset register to scrap/dispose of unused assets
Review your asset register for any assets that are obsolete and no longer used
in the business and dispose of them or scrap them. This will give rise to a
balancing adjustment and a deprecation claim
6. Other matters to consider for the end of the financial year
a. You must do a Stock take any trading stock you have as at the
30th June, these should be listed with a total value calculation.
b. Prepare a Debtors list as at the 30th June for those business, who use
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the accruals accounting method.
c. Prepare a Creditors Debtors list as at the 30th June for those business,
who use the accruals accounting method
d. Manage the shareholder loan account for Companies
e. Plan to prepare the Pay As You Go Annual Statements for your staff to
be Issued in early July
f. Ensure all your BAS’s have been lodged for the financial year.
Large penalties can apply for non lodgement of BAS’s. They start from
$110 for every 28 days, maximum of $550 in one year, for each BAS
not lodged and can be as much as $550 per 28 days depending on the
size of the business
For Further information Contact
Frank Brass (03) 93881611 0414183207 fbrass@hrblock.com.au
About H&R Block
H&R Block is the largest lodger of tax returns in Australia, through a network of over
360 Company Owned and Franchised offices though out Australia.
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