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 many clients throughout the year, especially over the coming few weeks, about actions to take for their circumstances. Still, as we approach the end of the year, we thought it is 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 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 might be income protection insurance, donations, or rates such as strata levies and insurance for investment property owners.
  3. With COVID leading to many more people working from home, some standard deductions rates are available for the period you were at home. Do you know what these rates are? If not, please get in touch with us.
  4. If you have an investment loan, talk to the lender about whether you can prepay up to 12 months of interest.  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 the 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 can now claim super contributions made personally even if your employer also makes contributions for you. Review whether you contribute 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 could be made by utilising unused concessional contributions caps on a 5-year rolling basis if your Total Super Balance was less than $500,000 on 30 June. This means you could catch up on 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 with your individual circumstances.

Kreston Stanley Williamson Team

*Correct as of 7 June 2021

Disclaimer – Kreston Stanley Williamson has produced this article to serve 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 in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.

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