You can reduce the tax payable by following these tips.
Strategy 1- Claim $30,000 instant asset write off. For example you purchased an asset, say a car that you use in your business for $29K then under this rule you can immediately claim deduction for the entire cost as it is less than the threshold amount. So review and bring forward the purchase of an asset before the yearend to reduce the tax.
Strategy 2- Prepay interest. If you have an investment property which is financed through a loan. The interest on the loan is tax deductible as it is funding the assessable income which will be generated through this investment. Therefore you can bring forward the next 12 month interest in this financial year and claim it in the tax return.
Strategy 3- Contribute before tax income of $25,000 to your superfund. This is known as concessional contribution cap and is currently $25K so by contributing this amount to your superfund account, you can claim it in your tax return. If you super balance is less than $500K then you can carry forward the unused cap from 2018/19 financial year to the next five years and these amounts can be used from 1 July 2019.
Strategy 4- Prepay Income protection insurance premium. As income protection insurance premium are tax deductible as it satisfies s8-1 tax deductibility criteria therefore depending on the circumstances you can prepay future 12 month premium to claim it in your tax return.
Strategy 5- Enter into salary packaging with your employer. It is an agreement with your employer to pay for some of the expenses like computers, cars, childcare and super straight from your pre tax salary, that is before it hits your bank account. In this way your taxable income is reduced and less tax is payable.
If any of these strategies are of interest to you then speak to Pine tax advisor today on 040 444 5437 or email at admin@pinetax.com.au