Tax

Australian Year End Tax Tips

As we approach 30 June, we have put together some key tax tips to help you optimise your 2022 tax position.

1. Pre-paying deductible expenses - if you have expenses that are tax deductible, consider paying them before 30 June to bring forward your tax deduction to the current financial year, this could include things such as office supplies, materials, subscriptions.

2. Donations – if you intend to donate ensure they are paid by 30 June 2022 and the organisation needs to be deductible gift recipient (DGR) for it to be 100% tax deductible.

3. Capital gains tax – if you sold any real estate, cryptocurrency or shares the contract date is when the asset is sold for tax purposes not the settlement date.

4. Home office – ensure that you monitor & keep record of the hours you are working from home which will be relevant calculating your home office claim for the 2022 financial year.

5. Maintaining complete records – make sure that you keep relevant receipts and payment records when tax time arrives.

6. Deductible super contributions – Personal contributions (made from after-tax money) can be claimed as a tax deduction which can reduce the amount of tax you pay on your income.

Before making the contributions, it is important to check that you will not exceed your concessional contributions cap of $27,500 for 2021/22 by making such a contribution ie consider how much your employer has paid into your super fund for the year including salary sacrifice contributions, before making the contribution. 

If you have exceeded your concessional contributions cap, there are opportunities to use your carry forward unused concessional contributions cap. If you have a Total Super Balance of less than $500,000 on 30 June of the previous financial year, you can utilise any unused amount of your cap for up to five years to make a carry-forward contribution. You can check your MyGov account for the balance of your unused concessional contributions cap.

How to claim a tax deduction

a. Make the contribution to your Superannuation Fund – ensuring you are not exceeding the concessional contributions cap or your carry forward unused concessional contributions cap.

b. Complete the Notice of intent to claim or vary a deduction for personal super contributions | Australian Taxation Office (ato.gov.au) and send it to your Superannuation Fund.

c. Receive a letter of acknowledgement from your Superannuation fund of the amount you want to claim.

d. Submit your tax return or information to us including the amount you are claiming as a tax deduction.

7. Low income earning spouse superannuation contribution -if eligible you can claim a $540 rebate by making a superannuation contribution of up to $3,000 on behalf of a low-income earning spouse.  Please ask us if you meet the eligibility criteria for this.

8. Superannuation pension – For those drawing a superannuation pension, you need to ensure the minimum pension is withdrawn from your superfund by 30 June 2022.

9. Bookkeeping software – For those running bookkeeping software, make sure that you are up to date with the single touch payroll (phase 2) changes. Ensure your software is up to date with the relevant rates embedded.

10. Family/discretionary trusts – Ensure that you have profit distribution resolutions is in place by 30 June 2022.

11. Immediate tax deduction for asset purchases - Take advantage of the immediate tax deduction available for depreciating assets acquired and first used by 30 June 2023, with no threshold limit on the cost of the asset. Small and medium businesses, with turnover less than $50 million, are also able to immediately write-off second-hand assets. 

If you have any questions please contact Trudi Feehan feehant@tax.uk.com