Monthly Archives: May 2016

Q&A8 Superannuation Contribution payment timing

Posted at 26 May 2016 , Q&A

Tax Planning Questions and Answers

Do I have to pay my superannuation contribution prior to 30 June to ensure its tax deductible in that year?

Answer – Yes. In both cases where you pay employee super and personal superannuation contributions, you must ensure the payment has not only been made, but to be certain, the payment must have also been cleared in your bank account. It is best not to leave these type payments until 30 June, in fact, to be sure make them at least 5-10 days prior to 30 June.

 

Disclaimer

The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Q&A7 Super Co-contribution payments

Posted at 19 May 2016 , Q&A

Tax Planning Questions and Answers

Super Co-contribution payments

Answer: If you are a low or middle-income earner and make personal (after-tax) super contributions to your super fund, the government also makes a contribution (called a co-contribution) up to a maximum amount of $500.

You will be eligible if you can answer yes to all of the following:

  • you made one or more eligible personal super contributions to your super account during the financial year
  • you pass the two income tests
    • your total income for the financial year is less than the higher income threshold ($50,454 for 2015-16)
    • 10% or more of your total income comes from eligible employment-related activities or carrying on a business, or a combination of both
  • you were less than 71 years old at the end of the financial year
  • you did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa)
  • you lodged your tax return for the relevant financial year.

You are not entitled to a super co-contribution for personal contributions you have been allowed as a tax deduction.

Source: ATO

Disclaimer

The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Q&A6 Self Education Expenses

Posted at 12 May 2016 , Q&A

Tax Planning Questions and Answers

Can I claim Self Education Expenses for a course I am undertaking?

Answer – Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.

a) The course must have a sufficient connection to your current employment and:

  • maintain or improve the specific skills or knowledge you require in your current employment, or
  • result in, or is likely to result in, an increase in your income from your current employment.

You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it:

  • might be generally related to it, or
  • enables you to get new employment.

Source: http://bit.ly/1BLosLZ

 

Disclaimer

The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Q&A5 Super Contribution Splitting

Posted at 04 May 2016 , Q&A

Tax Planning Questions and Answers

Splitting your Super contribution into your Spouse’s super and reap the tax savings rewards

Answer: You can split up to 85% of you pre-tax super contribution with your spouse. This can help their super grow and possibly reduce the tax you’ll pay as well if you make salary sacrifice contributions. The types of contributions you can split include your Super Guarantee Liability and Salary Sacrifice (RESC).

Source: http://bit.ly/1PSxVRh

 

Disclaimer

The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Year End Planning

Posted at 04 May 2016 , Advice

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“Why should I see my accountant about year end planning?”

For most businesses the last 12 months have been a fairly rocky road with changing consumer spending patterns, poor crops, housing pressures and declining sales. Hence it would make sense to ensure that you avoid getting taxed unnecessarily on what you did make or consider ways to minimise your potential losses prior to 30 June.

Typical issues beyond the normal tax issues that you might want to discuss with your tax adviser include:

  • Ensuring your Family Trust Distribution Resolutions are provided to your accountant prior to 30 June
  • Consider asset protection issues
  • Consider whether investments outside of super are the most effective tax strategy
  • Any business succession issues
  • If a farmer: the use of FMDs or available allowance or grants
  • Consider whether your Will and BDBN are up to date and are the most tax effective strategies
  • If nearing retirement consider whether starting a pension is right for you
  • If you are an employer are you on top of your obligations such as SuperStream
  • Is it an appropriate time to refinance any loans

A typical tax planning session will take between 1 – 2 hours and will require a little bit of preparatory work beforehand. Typical outcomes include:

  • Preparation of interim accounts to 30 June.
  • An estimated tax liability for the financial year.
  • Preparation of a personalised Tax Planning Scenario Summary Report with conclusions.
  • A meeting to discuss legal alternatives to reduce your tax and the best option to suit your circumstances.

Paying taxes is part of life so ensure you are paying no more than you are legally obliged to by seeing your accountant before 30 June!

Checkout our Tax Planning checklist!

The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.