Brander Accounting Updates

Ideally Tax Minimisation and planning should be on an ongoing basis and all taxpayers should review their existing situation well before the end of the tax year.
Examples of tax minimisation strategies for individuals include :-

Salary Packaging
Where possible, taxpayers should undertake an annual review of your Salary Package to ensure that you minimise your tax position.

Income Splitting
Consider splitting income earning assets with your low income earning spouse to reduce your tax position. Interest bearing deposits, investments and rental properties are a few assets that should be considered.

Capital Gains/Losses
Ensure that assets are owned for at least 12 months to be eligible for the 50% discount on capital gains.
If you have taxable Capital Gains, then consider realising any capital losses before year end to offset against the capital gains.On the other hand, it may be worthwhile deferring the sale of assets beyond the 30 June to defer paying the tax on the gain for another 12 months.

Deductions Accelerated
Consider bringing forward or accelerating tax deductions by prepaying work-related expenses. Other examples include doing last minute repairs and maintenance on investment property or motor vehicles used for work.

Medical Expense Rebate
If you have net medical expenses exceeding $1500 then a 20% rebate may be available for the tax year ending 30 June 2010. The $1500 threshold will increase to $2000 from the 1 July 2010.If you are close to the threshold and intend incurring more medical expenses, consider incurring them before the 30 June to qualify for the tax rebate.

Prepayments
Individuals may claim a deduction for prepayments where the period of prepayment is less than or equal to 12 months. Prepayments of $1000 or less may be fully deductible in the current tax year.

Investments and Rental Properties – 221D Variation
Individuals with negatively geared investments or rental properties do not need to wait until they lodge their tax return to get a refund. They can submit a PAYG Withholding Variation and get the extra amount by virtue of reduced PAYG Tax being withheld from their salary or wages income.

Rental Property – Depreciation
When acquiring a new rental property, arrange for a Quantity Surveyors Report (also known as Depreciation Schedules). This will enable you to maximise depreciation claims on buildings, structural improvements, furniture and fittings.

Superannuation Strategies
Superannuaton is probably our most tax efficient form of investment. Superannuation strategies include: salary sacrificing into super; superannuation co-contributions and making superannuation contributions for your low income earning spouse.