End Of Tax Year 2010 – Summary Of Tax Strategies For Individuals

With the end of the 2010 tax year (midnight Wednesday 30 June 2010) fast approaching, here are some strategies to consider if you’re an individual tax payer…

1. Income

• Delay receiving income to July 2010, as individuals are assessed on a cash basis

2. Deductions

• Consider pre-paying deductible expenses
• Consider bringing forward purchases of employment related depreciable assets that cost $300 or less for an outright deduction

3. Capital Gains

• Realising capital losses (unless the intention is to repurchase the investment shortly thereafter)
• Defer capital gains to the new financial year

4. Superannuation

• Making self-employed superannuation contributions (check the pre-requisites for deductibility) and make contributions from after tax sources
• Utilising the government’s 100% superannuation co-contribution scheme
• Ensure that at least the minimum pension for 2009-10 has been drawn
• Re-contributing excess pension amounts to superannuation

5. Tax Offsets

• Making superannuation contributions for low income earning spouses to access an 18% tax offset
• Bringing forward any checkups or other medical expenditure if the 20% tax offset threshold has been or can be reached

6. Other Matters

1. Consider bringing forward any necessary repairs to rental properties (note: repairs prior to rental or to remedy defects present at time of purchase are non-deductible but add to CGT cost base)
2. Paying donations
3. Consider if any offshore income voluntary disclosures should be made
4. If your salary package is being re-negotiated for next year you may wish to contact us to discuss the tax benefits of various salary packaging options

To discuss any of these issues further, please contact us at Peter H.Hunt and Associates here.