05 Jul Rose Guerin Tax Planning for Year End
With the 2014 /15 financial year now complete you should be well into your tax planning with your accountant.
Here are 4 areas to consider when you are discussing your tax planning for the last financial year and as you move into the next financial year.
The superannuation rebate and personal deductions
If your spouse’s income is less than $10,800 per annum you may be eligible for rebate of up to $540 for superannuation contributions. This rebate reduces for income amounts up to $13,800 p.a.
For personal deductions you should check that the total of your personal contributions, for which you are eligible to claim a tax deduction and any employer contributions during the income year do not exceed $30,000 for individuals under 49 years of age on the 30th June 2014, or $35,000 for all other individuals.
Concessional contributions above these caps are assessed to the individual at their marginal tax rate, and may also incur an interest charge from the ATO.
Stock-take if you own a business
If you are a business owner you may want to think about the benefits of revaluing your trading stock. Remember you can value stock at cost, market selling value or replacement value.
If you are going well you may wish to defer some income
It is worth considering whether assessable income can be deferred to the 2016 income year. This requires careful consideration and should be discussed with your accountant.
Now is a good time to review your tax strategy given that your circumstances may have changed.
One thing we do know is that change is constant. The start of a financial year is a good time to talk through what has changed in your business or life stage and what you are planning to do in the future. This gives your accountant the best opportunity to respond appropriately to your changing circumstances with the right tax strategy for you.
These are just a few of the areas regarding tax planning that you should be talking with your accountant about right now. If you have any questions or would like more information please contact me firstname.lastname@example.org