Year End Housekeeping: Individuals

Boat Red5
22
Jun

Year End Housekeeping: Individuals

22.06.16

As we approach 30 June, it is time to turn your attention to those year end housekeeping matters.  While there is usually a rush to deal with these matters during June, a more strategic and efficient approach is to incorporate these matters into an overall plan for your family matters and affairs, including estate planning.

 

The below planning matters may be useful for individuals to consider before the year end.

 

SUPERANNUATION

Now is a good time to consider making pre-tax contributions to your super, before the current cap of $30,000 (for those under age 49) or $35,000 (aged 49 or over on 30 June for the previous income year) is reduced to $25,000 from 1 July 2017.  Click here to read more considerations for your super before 30 June.

 

DONATIONS

Ensure that you are making your donations to deductible gift recipients and that you have the paperwork to support your deductions. 

 

PREPAYMENT OF INTEREST

Prepaying interest for the following year on investment properties or other investments is an effective way of accelerating a tax deduction, however, the flow on impact of this means that the pull forward needs to occur next year otherwise the benefit is lost. 

 

FAMILY TRUSTS

It is important to remember that trustees must comply with the respective trust deeds when appointing income and any capital gains to the beneficiaries.  This generally means having a meeting on or before 30 June, however, the trustee should consult the trust deed and their advisers before making any resolutions.

 

CAPITAL GAINS AND LOSSES

Those with investment portfolios (e.g. shares) often use this time of year to review performing and non performing investments and realise losses to offset any gains made during the year.

 

CAR EXPENSES

For those with work related car expenses, there are two available methods for calculating deductions:

  • Cents per kilometre method – this is capped at $0.66 per kilometre, regardless of engine size; and
  • The log book method – taxpayers wishing to utilize this method will be required to maintain a log book for a continuous twelve week period if they have not already done so within the last five years.

 

Should you have any questions regarding how the above considerations may be applicable to you, please contact your relevant ESV engagement partner on 9283 1666.