Forman Financial Services

EOFY 2019 – Taxation

With the end of the 2019 approaching, we would like to highlight to some things worth knowing as part of your year-end tax planning:

1.    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.

2.    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.

3.    Defer income – 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.

4.    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.

5.    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.

6.    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.

7.    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.

8.    Private health insurance – having your own private health insurance may deliver a number of benefits including:
a.    Being eligible to receive the private health insurance rebate;
b.    Avoiding the Medicare levy surcharge; and
c.    Avoiding the lifetime health cover loading if private insurance is not taken out before turning 30.

For more information on this subject feel free to get in touch with us click here
To receive free updates on relevant information click here
To read more about specialised service offers for Financial Planning please click here