June 30 is approaching – what deductions are you entitled to?
With a week till June 30 a lot of the conversations we’re having with clients right now are about tax deductions, and what you’re entitled to claim back from the tax man.
With tax deductions, every little bit counts. Prepaying your expenses can bring forward your tax deductions so you don’t need to wait another year for your refund. You can prepay expenses such as leases, rent, phone, internet, and business asset repairs, not exceeding more than one year.
One trap that a lot of people fall into is thinking all donations are deductible. They’re not. In order for a donation to be deductible it must go to a registered charity. That means pledges to causes through platforms like GoFundMe are not necessarily deductible, because you’re contributing to crowdfunding something, not donating to a charity.
The last thing to consider is trust distributions for family trusts. This year is proving different with the ATO dropping a Taxpayer Alert, a draft Taxation Ruling, and a draft Practical Compliance Guideline in February. These raise significant concerns regarding some common tax minimisation strategies historically employed by family trusts. If you have any questions, please get in touch, or talk to your accountant.
If you’re self-employed you can contribute up to $27,500 to your superannuation as a concessional contribution. But keep in mind the money needs to be in your superannuation account on or before June 30, so do not wait till the last minute to make the transfer.