With the end of the 2019 approaching, we would like to draw your attention to some things worth considering as part of your year-end tax planning.
As always, we are here to assist you. If you have questions about any of the strategies mentioned in this email, or you would like to explore new opportunities for tax planning that might be appropriate for your situation, please don’t hesitate to contact us.
Things to consider:
Pre-pay deductible expenses
If you have expenses that are tax deductible, consider paying them before 30 June in order to bring forward your tax deduction to the current financial year.
Also, if you run an eligible small business, the instant asset tax write-off that was available in past financial years has been extended to 30 June 2019.
Residential rental properties – travel expenses
For investors that have residential rental properties, the tax deduction for travel expenses to inspect the property was abolished from 1 July 2017.
Where possible consider deferring income until after the end of the financial year, or where your tax rate is likely to be higher in the 2020 financial year, consider bringing income forward to the 2019 financial year.
Planning to retire, or stop working?
if so, consider deferring your plans to stop working until early in the next financial year. Any lump sums you receive from your employer such as payments for accrued annual and long service leave, will be taxed in the year they are received. If your tax rate is likely to drop in the 2020 financial year, deferring leaving work may result in a lower rate of tax being payable.
Tax deductible superannuation contributions
From 1 July 2017, claiming a tax deduction for personal superannuation contributions got easier. Tax deductions are now available to a much wider group of taxpayers. However, contributions are subject to limits and can generally only be made by people under the age of 65, unless they continue to work. Speak to us about this opportunity.
Maintain good records
There is nothing more frustrating than not being able to find receipts and payment records when tax time arrives. Consider using an app or other web-based solution for recording expenses and maintaining your vehicle log book.
Net Medical Expenses Offset
This financial year is the last year the offset will be available for costs associated with disability aids, attendant care, and aged care fees.
Private health insurance
Having your own private health insurance may deliver a number of benefits including:
- Being eligible to receive the private health insurance rebate;
- Avoiding the Medicare levy surcharge; and
- Avoiding the lifetime health cover loading if private insurance is not taken out before turning 30.
This is a snapshot of the things taxpayers should be thinking about as they approach the end of the 2019 financial year. Remember, it’s important that you discuss these considerations with your tax agent or accountant.
If you have questions about any of the issues raised, or if you would like us to review any aspect of your business or personal tax planning, or simply check that everything is on track, please don’t hesitate to contact us on (03) 6344 3899 or send us a message below to arrange an appointment.
The information on this website is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation and investment objectives.
Whilst every care has been taken in the preparation of this website, BND Financial Pty Ltd (‘BND Financial Services’), its directors, authors, consultants, editors and any persons involved in the construction of this website, expressly disclaim all and any form of liability to any person in respect of this website and any consequences arising from its use by any person in reliance upon the whole or any part of this website.