In This Edition:
The end of the financial year is in sight, but businesses shouldn't assume their 2016-17 tax outcome is set in concrete just yet - there are still some legitimate tax planning strategies that can help us help you not pay a cent more tax than you have to.
We also look at how to make good use of a tax loss, and discuss interest income and who is deemed to be assessable. Importantly for SMSF trustees, we also run over the newly minted transitional CGT relief measure that can apply when trustees comply to the new balance cap.
Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.
Click here to view our June 2017 Newsletter...
BUSINESS END OF FINANCIAL YEAR CHECKLIST
There are several important tasks that businesses need to perform before the end of the financial year on June 30:
- Super guarantee payments need to be processed before June 30 to qualify for a tax deduction in the 2016-17 Financial year
- If your business sells products, you will need to do a stocktake and ensure all transactions are recorded.
- If you have employees you will need to prepare your annual employee Payment Summaries (also known as group certificates), which they will need to be given by July 14.
- Other tax planning mechanisms that business clients can use are: Deferring invoicing, purchasing business assets up to $20,000, writing off bad debts, pre-pay your expenses for up to 12 months, pay any staff bonuses or directors fees or pre-paying any software licensing fees.
If you have any questions or are looking for any other pre-June 30 tax planning advice, feel free to contact us on 9686 3130 or by email at firstname.lastname@example.org
REVIEW YOUR SUPER BEFORE JUNE 30
Superannuation is something that many of us do not even consider until we get close to retirement age, but government changes that are being made on June 30 this year mean that you should do a quick health check of your superannuation situation.
1. Check your super account balance
New government rules on June 30 mean that people with balances over $1.6 million will be taxed at a higher rate. If that is the case for you, it is definitely worth discussing alternate strategies to minimise your tax going forward.
2. Contribution splitting
Those with high balances should consider equally splitting income with their spouses to keep each individual balance below $1.6 million.
3. Examining alternate structures
If you are still of working age and your super balance is approaching the $1 million mark and you still have several years of your working life ahead of you, it may be worth considering a self-managed super fund, family or discretionary trust or even a gearing strategy outside of Super
4. Your super fund's insurance
One of the benefits of an industry super plan is the life insurance cover that it provides, but it is worth checking if this amount will put you above the new $1.6 million cap.
5. Transition to retirement
Check that activating a transition to retirement (TRIS) plan after July 1 will give you the same tax benefits that you are now getting now as you may be subject to the new 15% tax on your fund's earnings.
Super is a complex issue, but well worth discussing with your financial advisor to safeguard your financial future. G J Barnett and Associates has access to a number of talented financial advisors and we can also help you set up and administer you Self Managed Retirement Fund to give you maximum control of your future retirement income. Contact us if you have questions or would like further information.
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Should you require more information regarding any topic covered in our newsletter, please contact GJB on 02 9686 3130 for advice on #yourself, #yourbusiness or #yoursuper.
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Disclaimer: All information provided in this newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.