The end of financial year is fast approaching, but there is still time to get your tax in order. We’ve compiled our top strategies for EOFY tax planning for your personal consideration.
| If you | You may want to | So you can | Check | |
|---|---|---|---|---|
| Gain from a capital loss | Realised a capital gain from an investment | Trigger a capital loss by selling a poorly performing investment that no longer suits your circumstances | • Use the capital loss to offset your capital gain and save tax • Free up money for more suitable investment opportunities | |
| Defer asset sales | Are thinking of selling a profitable asset this financial year | Defer the sale contract until after 30 June | • Defer paying Capital Gains Tax • Possibly reduce your capital gains tax liability | |
| Prepay investment loans | Have a geared asset such as a rental property or an investment portfolio | Prepay 12 months interest on your investment loan | • Bring forward your tax deduction | |
| Private health insurance rebate | Expect to earn over $90,000 (individuals) or $180,000 (families) | Check what rebate you are receiving from your private health fund | • Make sure you don’t get a surprise bill when your tax is prepared | |
| Pay for insurance and avoid paying a surcharge | Expect to earn over $90,000 (individuals) or $180,000 (families) | Take out an eligible private hospital insurance policy | • Save paying the Medicare Levy Surcharge of between 1% to 1.5% of your income in the future financial years | |
| Start a new log book | Use a vehicle for work purposes | Commence maintaining a log book before 30 June | • Maximise the amount you can claim for the business use of your vehicle | |
| Read your odometer | Use a vehicle for work purposes and claim using the log book method | Ensure you take the odometer reading on 30 June | • Continue to use the log book method to claim the business use of your vehicle | |
| Prepare a home office work record | Have worked at home | Keep a written record of the hours you have worked at home | • Use the ATO fixed rate per hour of 67c for your home office running cost deduction | |
| Obtain a depreciation report | Own a rental property | Contact a quantity surveyor and obtain a depreciation report if you don’t already have one | • Claim for the decline in value of the assets in the rental property, and the building itself • NB: Depending on the age of the property and when it was purchased. Legislation around depreciation recently changed, so please speak with your accountant about your personal situation | |
| Donate | Are considering making a donation | Make the donation before 30 June | • Bring forward the deduction to 2023 |
We have also prepared a comprehensive guide to help you step through the different opportunities, how they should be implemented, and the future tax cashflow consequences from adopting the strategies.
Have you got questions about end of financial year? Contact your local Bentleys tax advisor today. We’re here to help you get where you want to be.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.