Last minute tax reducing and wealth smart ideas
Last minute tax reducing and wealth smart ideas
Super contributions are tax deductable
So from 1/7/18 you can get a tax deduction for investing in your Superannuation known as Super contribution, even if you are an employee.
Make sure your old salary sacrificing arrangements have reduced the Super contribution to 25k not 30k or $35k as in previous years.
Find out from your financial adviser if this is suitable to your individual circumstances.
Be careful limits apply
Super co-contribution
Super co-contributions help eligible people boost their retirement savings.
If you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund, the government also makes a contribution (called a co-contribution) up to a maximum amount of $500.
The amount of government co-contribution you receive depends on your income and how much you contribute.
When you lodge your tax return, we will work out if you’re eligible. If the super fund has your tax file number (TFN) we will pay it to your super account automatically.
The way your co-contribution is calculated depends on the financial year in which you made your personal super contributions.
More about it
https://www.ato.gov.au/individuals/super/in-detail/growing/super-co-contribution/
Tax offset for spouse contributions
This information is for people who:
- make contributions to their spouse’s super accounts, and
- want to claim a tax offset for these contributions.
Simpler depreciation for small business 20k equipment claim
Under these rules, you:
- immediately write-off – deduct their full cost in the year you buy them – most depreciating assets that cost less than $20,000 (see note 1) each that were bought and used, or installed ready for use from 7.30pm (AEST) on 12 May 2015 until 30 June 2018
- pool most other depreciating assets that cost $20,000 or more in a small business asset pool and claim
- a 15% deduction in the first year (regardless of when you purchased or acquired them during the year)
- a 30% deduction each year after the first year
- write-off the balance of your small business pool at the end of an income year if the balance – before applying any other depreciation deduction – is less than $20,000.
Review your hospital cover
Unlike as you may be misled in the television ads, taking out hospital cover in June does not help you avoid the medicare levy surcharge immediately. This is charged on a pro-rata day basis on your income if it is over 90k id single or 180k if a family. So review in June if you need hospital cover to reduce medicare levy surcharge for the following tax year.
Claiming the Logbook method on your car travel for work or business
Don’t be too lazy to do a logbook if you travel more than 5000km per year for work or business.
Keep all your car running costs such as petrol, rego, insurance, services and repairs, acquisition and finance costs.
Find out more on how to claim your car for work or business at our related article below.