TAX TIPS 2018 – Individual and Business

Dear Clients,

As the year-end is fast approaching, we would like to take this opportunity to provide you with some great tax tips for individuals and businesses as follows:

 

Year-end Tax Tips

For Individuals:

  1. Pre-pay Interest/Insurance for the investment property;
  2. Bring forward maintenance expenditures for the investment property;
  3. Buy work-related items < $300 for an immediate deduction;
  4. Make tax-deductible donations before 30/6/2018;
  5. If you are an employee, salary sacrifice some of your wages into superannuation up to the contribution cap to reduce your gross salary and tax paid accordingly.
  6. Super co-contribution (applied to after-tax contribution only):
Government Super Co-Contribution Rates
Taxable Income 2017-18
Lower Threshold $36,813
Upper Threshold $51,813
Maximum Contribution $500
Matching Contribution $0.50 per dollar you contribute
  • The offset decreases by 3.333 cents for each dollar of income over the lower threshold;
  • Taxable income = assessable income + reportable benefits and reportable employer super contribution.
  • Cut off dates for super contribution are:
    • 3 pm Friday 22 June 2018 for direct debit payments
    • 3 pm Tuesday 26 June 2018 for BPAY and EFT payments.
  • High income-earners (income > $263,157) who work for multiple employers can nominate that part of their wages not to be subjected to SG. This will help to avoid an unintentional breach of $25,000 concessional cap due to SG.

For Business

  1. Company tax rate remains unchanged at 27.5% in financial year 2018/19.
  2. Defer the receipt of income until next month in July so that the income can be included in the next financial year instead of this current financial year;
    • Fees / Service rendered;
    • Interest
    • Rental income
  3. Bring forward any business expenses and pay for it before 30th June,  by this way you can maximise deductions for the current year:
    • Repair – consider completing prior to year end,
    • Gift/Donations to a registered charity;
    • Prepaid interest on loan;
  4. Review Debtors and Trading stock for write-off
  5. Consider to make additional super contribution this year as the concessional and non-concessional caps will decrease next financial year. Concessional super is only deductible if being paid by 26 June 2018.
    • Again please note  cut-off dates for super contribution are
      • 3 pm Friday 22 June 2018 for direct debit payments
      • 3 pm Tuesday 26 June 2018 for BPAY and EFT payments.

Concessional super contribution cap:

Concessional caps
Age
Income Tax Year Under 49 yrs 49 yrs or over on June 30th
2018-2019 $25,000 $25,000
2017-2018 $25,000 $25,000

Non-Concessional super contribution cap:

Income Tax Year Non-concessional caps
2018-2019 $100,000
2017-2018 $100,000

 

  1. Depreciation: instant asset write-off threshold of $20,000 (net of GST) per asset for small business is extended to 30/6/2019.

 

Happy Year End everyone!!!

Kindest regards

Ms Teresa Tran, FCPA.

Principal Director.

Comments 1

  1. Hello Teresa,

    Thank you for sharing “TAX TIPS 2018 – Individual and Business.” I really enjoyed your writing. Individual tax tips are amazing.

    While filling my tax return, can you tell as an individual what types of expenses I can claim?

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