With the end of financial year nearly here, there are a few things you can do to get ready.
This is the time of the year during which you should implement your tax planning initiatives for the current year and plan your business goals for the upcoming year.
We’ve put together a list of things you should think about –
Super contributions – timing the payments
Your business can only claim a tax deduction in the financial year in which the super fund actually receives your payment.
What this means is that is that if the super funds receives the April to June 2015 super contributions in July 2015 you will only be able to claim the tax deductions in the June 2016 tax year. You can bring forward your tax benefit by paying the super early.
TIP – if cashflow allows and you’re are making profits, ensure you make the April – June 2015 super payments on or before 25th June 2015 to bring your tax deduction forward.
Maximise your super benefit
It is widely recognised that it is beneficial from a tax perspective putting money into super as you are taxed at 15% rather than 45% when on the maximum marginal individual tax rate.
So if you have not contributed the maximum amount into super for the current financial year it is worth considering the benefits of doing so. For the June 2015 year end the concessional contribution cap for those under 50 is $30,000.
TIP – extra super can be contributed through salary sacrifice.
Obtain specialist advice to consider whether it is appropriate to prepay any interest if you can to bring forward tax deductions into the current year.
Research & development Tax Incentive
Have you considered whether you