Last minute tax tips for Individuals

Current as at 18 June 2020

Tax planning is a year round activity at Stanley & Williamson, but June is the time to double check that any critical actions are taken before 30 June. We’ve spoken to lots of clients throughout the year and especially over the last few weeks about actions to take for their individual circumstances, but as we approach the end of the year we thought it worth reminding you of things that need to be attended to before the new year rolls around.

  1. Review your capital gains tax position for the year and take appropriate action. If you’ve made gains, do you have any unrealised losses you could crystallise before year end to reduce the tax impact? Please discuss plans with us before actioning.
  2. For individuals, are there deductible expenses you know you have to pay soon that you could pay before 30 June to get a tax deduction this year? Examples might be income protection insurance, donations, or perhaps rates, strata levies and insurance for investment property owners.
  3. If you have an investment loan, talk to the lender about whether you can prepay up to 12 months of interest on the loan. While this strategy is only timing, it will decrease your tax for this year and defer it until next year.
  4. If you wish to change structure, 1 July is the easiest and cheapest time to start the new structure.
  5. Have you got your income producing assets in the correct name to minimise tax?
  6. Since 1 July 2017, as an employee, you are now able to claim super contributions made personally even if your employer makes contributions for you as well. Review whether you make a contribution before 30 June up to your maximum total allowed of $25,000 (including contributions made by your employer).
  7. Do you need to review or adjust your salary packaging before 30 June to utilise any and all concessions that may be available to you?

The above lists should remind you of any areas you may have forgotten. Please feel free to contact your client manager should you wish to clarify something or discuss your individual circumstances.

DISCLAIMER

This newsletter has been produced by Stanley & Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances.

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