Year End Housekeeping: Individuals
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.
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.
Ensure that you are making your donations to deductible gift recipients and that you have the paperwork to support your deductions.
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.
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.
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.
For those with work related car expenses, there are two available methods for calculating deductions:
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.