End of year tax tips

The end of the tax year is edging closer. If you haven’t planned how you will maximise your income and save some tax, take note! The most effective strategies are often the simplest and can be applied before 30 June this year whilst others should be considered for next year.

Here are some from both categories to consider:

Pre 30 June

⊕ Defer non-essential income until the new financial year.

⊕ Review your investment portfolio prior to 30 June to determine whether investments should be sold to offset any capital gains or losses made throughout the year.

⊕ Ensure you are eligible for capital gains tax concessions by holding assets for more than 12 months.

⊕ Maximise tax deductions through super contributions. Alternatively, make a contribution into super for your spouse – this could provide you with a tax offset.

⊕ Pay next year’s interest on investment property, margin loans, or protected equity loans, and claim the deduction this year.

⊕ Ensure you review income distributions from family trusts. You can lose franking credits in some circumstances if a family trust election is not made.

Next year

⊕ Make sure you hold assets in the most appropriate tax structure. Individuals, companies, trusts and super funds are all taxed differently on their capital gains and income.

⊕ Use franking credits to reduce tax on lower taxed entities like super funds and lower income earners. Remember that excess franking credits are refundable.

⊕ Income split wherever possible to take advantage of the progressive tax system.

In an ever-changing and complex world, seeking professional advice can help you through the maze. We invite you to contact us to explore your individual tax planning opportunities further… but please don’t leave it until the last minute.

Tax Planning provides our clients with pro-active advice and solutions designed to explore every available strategy to legally reduce your tax and maximise opportunities by considering their tax impact.

Popular tax planning strategies that will save business owners tax include:

⊕ Contributiing to super;

⊕ Managing bad debts;

⊕ Distributing profits via discretionary trust to other people or entities who pay tax at a lower rate than you – e.g. retired parents, kids / siblings or a spouse;

⊕ Distributing profits to a bucket company;

⊕ Paying Income Protection insurance from your super;

⊕ Small business CGT concessions;

⊕ Tax effective gearing.

We invite you to contact us to explore your business tax planning opportunities further… but please don’t leave it until the last minute.


All strategies and information provided on this website are general advice only which does not take into consideration any of your personal circumstances. Please arrange an appointment to seek personal financial and taxation advice prior to acting on this information.