2015 Tax Planning Strategies

1 | Concessional Superannuation Cap

The concessional (“tax deductible”) superannuation cap for 2015 is $30,000 per year for those who were under 50 during the year and $35,000 for those aged 50 to 74. Super Funds take a few days to process contributions to your account so don’t leave it to 30 June to make your final contributions!
Do not go over this limit or you will pay more tax! Note that employer super guarantee contributions are included in these caps. Where a contribution is made that exceeds these limits, the excess is taxed to the fund member's account at an effective rate of 46.5%.

2 | Employee Superannuation Payments

To claim a tax deduction in the 2015 financial year, you need to ensure that your employee superannuation payments have CLEARED your business bank account by 30 June 2015.
Do you have 20 or more employees? Are you Super Stream compliant? If you’re not sure or need to find out how, contact Maxim.

3 | $20,000 Upfront for Asset Purchases

Small Businesses (<$2m turnover) who purchase assets costing <$20,000 from 13 May to 30 June 2015 can claim the cost as an upfront deduction in 2015 rather than claim depreciation over the asset’s life.
This Budget announcement has now been passed into law. Is your asset purchase eligible for the $20,000 upfront deduction? Give Maxim a call to find out.

4 | Defer Income

Subject to cashflow requirements, defer issuing invoices until after 30 June 2015. This won’t apply to some small businesses who elect to pay tax when it is received, rather than invoiced.

5 | Bring Forward Expenses

Bring forward certain expenses that are planned to occur after 30 June 2015. For example, repairs & maintenance and consumable expenditure.

6 | Stock Take / Work in Progress

If you have trading stock remember to prepare a detailed Stock Take and/or Work in Progress listing as at 30 June 2015. Review your listing and write-off any obsolete or worthless stock items.

7 | Prepay Expenses for Small Business

“Small Business Concession” taxpayers can prepay expenses (up to 12 months) (e.g. Loan Interest, Rent, Subscriptions) by 30 June 2015 and obtain a full tax deduction in the 2015 year.

8 | Private Company (“Division 7A”) Loans

Business owners who have borrowed from their company must ensure that the appropriate principal and interest repayments are made by 30 June 2015. We can assist with implementing the appropriate strategy.

9 | Personal Remuneration Structure

Review your personal remuneration structure to ensure it is structured effectively. This includes a review of your salary, dividends, directors fees, superannuation and salary sacrifice opportunities.

10 | Trust Distribution Minutes

Trustee Resolutions for distributing profit must be prepared and signed BEFORE 30 June 2015 for all Discretionary (“Family”) Trusts. Please see us for more information about these resolutions.

11 | Other Strategies

  • Capital Gains Tax: capital losses realised on non-performing investments can reduce your CGT liability on any capital gains you’ve made in the year.
  • Log Books: do you have a valid motor vehicle logbook from the last 5 years? If not, get started on the 12-week period before 30 June 2015.
  • Property Depreciation: a Property Depreciation Report (prepared by a Quantity Surveyor) allows you to claim depreciation and capital works deductions on your rental property.
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