Tax Saving Strategies prior to 1 July 2014
A good strategy to reduce tax payable is normally to accelerate any income tax deductions in the current income year, which will reduce overall taxable income in the current year and defer any income to the following year.
Prepayment strategies – Small Business Enterprises (SBE) Business with income less than $2million a year
SBE taxpayers making prepayments before 1 July 2014 can choose to claim a full deduction in the year of payment where they cover a period of no more than 12 months (ending before 1 July 2015).
The kinds of expenses that may be prepaid include:
- Rent on business premises or equipment.
- Lease payments on business items such as cars and office equipment.
- Interest – check with your financier to determine if it’s possible to prepay up to 12 months interest in advance.
- Business trips.
- Training courses that run on or after 1 July 2014.
- Business subscriptions.
Super Guarantee Charge for employees should be paid before 30 June to be able to claim a tax deduction in the current year. Also, consider making additional contributions into super, however contact us to check the superannuation contribution limits.