Tax Planning for Individuals – What to Do Prior to 30 June!

A focused woman meticulously reviewing financial statements with a pencil in hand, surrounded by a calculator and documents, illustrating  tax planning and financial management.

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 last few weeks about actions to take for their individual circumstances. Despite this, and 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 financial 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. From 1 July 2022, the fixed rate for claiming work from home expenses has reduced from 80c per hour down to 67c per hour, and for some this will mean that the actual cost method will become more attractive.  If you work from home, you should ensure that you have records available to assess the best way to claim your expenses.
  4. 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 $27,500 (including contributions made by your employer).
  5. Additional concessional superannuation contributions can be made by utilising any unused concessional contributions caps on a 5-year rolling basis, as long as your Total Super Balance was less than $500,000 on the 30 June just before the start of that financial year. This means you could catch up your contributions if you did not take advantage of the limit in past years.
  6. 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. This may be especially important if your income in the 2024 financial year is likely to be lower than this 2023 financial year.
  7. If you wish to change structure of your investments or you are planning to go into business, 1 July is the easiest and cheapest time to start or adjust to the new structure.
  8. Have you got your income producing assets in the correct name to minimise tax? Is the income being taxed at the lowest possible rate?
  9. 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?
  10. Do you hold cryptocurrency or something similar? Do you hold this cryptocurrency on revenue or capital account? The ATO believes there is a large under reporting of cryptocurrency transactions. If relevant to you, be prepared for some questions from the ATO, if you are no dealing with it correctly.

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

Author: Michael Goodrick

*Correct as of 13 June 2023

*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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