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Tax Time 2017

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Here are some great Tax Time tips by Dr Steve Enticott from CIA Tax

Co-contributions for super are something you should DO. Yes, the government reduced the matching rate to 50% (meaning a 50% return on your money instead of a 100% return!!) and lowered the maximum amount to $500. Yet it is still money FREE from the ATO to your super!

You must earn below an income (must plus FBT) of $51,021 to potentially qualify. For details click here.

Small Businesses - Prepay your expenses where you can and don’t be too hasty getting out your invoices prior to June 30 if it’s been a great income year. Don’t forget the $20,000 immediate deduction on assets has again been extended another 12 months (2018) for those with a turnover below $10m.

Stocktakes. If you have stock you will need to get out there and do the dreaded counts. Stock can also be counted on Cost, Replacement, or Actual values.

Super Contributions to be claimed in this tax year. They need to be paid before June 30 and yes in many cases you should contribute to super. For example; An average earner saves 19.5% of tax on their contribution, so even if they put the money into the safe cash option of the fund they have already had one great investment year! However, if you are on the younger side and burdened with a lot of bad debt (non-investment lending) then speak to us about doing the numbers on super contributions first

Individuals - Make sure you have paid for all your work related expenses prior to June 30. Bringing some forward (if you can) when you’ve had a great income year becomes even more important.

Made a Capital Gain during the past year? For example, the sale or part sale of a business (including investments the business has made), shares or a property. If the answer is a ‘yes’ then you should be thinking about your options for managing the CGT liability. Start by looking for capital losses to offset the CGT liability (or losses carried forward from prior years) and consider selling out losses before June 30 to offset gains – call us to discuss other methods.

Medicare Levy Surcharge and Rebate Reduction income tests
For the rates of Medicare levy surcharge that applies, or the amount of rebate you are entitled to see, the rebate and surcharge levels applicable for 2017/8 are:

For a Federal Budget update click here.

  • Single parents and couples (including de facto couples) are subject to family tiers.

Superannuation No changes for 2017 tax year concessional amounts:

  • For those aged 50, the concessional cap payments into super are $35,000 and for the rest of the younger ones they can contribute $30,000 per year.
  • For under 65’s they may be able to also contribute $540,000 Non-Concessional all at once.
  • For over 65’s they will need to pass the work test, and forget about it over 75 sadly.

Significant Budget 2018 changes! Consult with CIA before making any changes, but the main one to consider now is the new maximum for tax deductible contributions will be $25,000 for all age groups.

Don’t forget – Sunglasses, Hats and Sunscreen for taxpayers that work in any outdoor occupation (including driving) are tax deductible. However they cannot be claimed unless you keep the receipts.

Claim Everything - This one is a bit tongue in cheek, though correctly claiming expenses is our expertise. Your job is to think of absolutely anything that has a connection with your income and let us measure the appropriateness of each claim.

To learn more about CIA Tax and their services click here.