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Tax Planning for Individuals – don’t miss your opportunity in 2021

Tax Planning for Individuals – don’t miss your opportunity in 2021

Tax planning is a year-round activity at Kreston 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 coming few weeks about actions to take for their individual circumstances, but as we approach the end of the year, we thought it be worth reminding you of things that need to be attended too before the new financial year rolls around.

  1. Review your capital gains tax position for the year and take appropriate action. If you have 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 must pay soon that you could pay before 30 June to get a tax deduction this year?  Examples of this might be income protection insurance, donations, or perhaps rates such as strata levies and insurance for investment property owners.
  3. With COVID leading to a lot more people working from home, there are some standard rates of deductions available for the period you were at home. Do you know what these rates are? If not, please contact us.
  4. 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.
  5. If you wish to change structure, 1 July is the easiest and cheapest time to start the new structure.
  6. Have you got your income producing assets in the correct name to minimise tax?
  7. 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). Please note this threshold increases to $27,500 from 1 July.
  8. Additional concessional superannuation contributions can be made by utilising any unused concessional contributions caps on a 5-year rolling basis, if your Total Super Balance was less than $500,000 on the 30 June. This means you could catch up your contributions if you did not take advantage of the limit in past years.
  9. Do you need to review or adjust your salary packaging before 30 June to utilise any or 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 or discuss any of the above points in relation to your individual circumstances.

Kreston Stanley Williamson Team

*Correct as of 7 June 2021

*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.

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