Walker Hill Group

7 things you didn’t know you could claim on your tax

You probably don’t want to hear this, but it’s time to crank up the preparations for tax time (if you haven’t already started). Sure you may already keep the odd receipt for travel expenses, or have a list of items written down that you could claim on (but probably wont bother like last year), however you’re about to discover there are many other deductions to take advantage of that could end up saving you hundreds of dollars.

Every year we pleasantly surprise many clients with things they didn’t know they could claim on. Here are some commonly missed items you shouldn’t forget to overlook to maximise your tax deductions this financial year.

 

Personal Superannuation Contributions From After Tax Wages

Last financial year, you could only claim a deduction for personal superannuation contributions if less than 10% of your total income was from salary and wages. This 10% rule has now been banished (yay) and payments you have made to your personal super accounts are now deductible, which means no more salary sacrificing!

 

Quantity Surveyors Report When Purchasing An Investment Property

Deductions will vary in accordance to the type of property in question, the age of the building and any construct work or developments that have been carried out on the property.

 

TPD & Life Insurance Policies Held Within Superannuation Accounts

TPD (total and permanent disability) and life insurance premiums that are paid within a complying super fund may be fully or partially tax-deductible, depending on the occupation associated with the TPD policy.

 

Prepay Expenses

Prepaying your expenses can result in an immediate deduction for small business entities and individuals, however this is commonly overlooked as a strategy to increase deductions.

You can deduct the full expense on your prepaid expenses, such as loan interest, subscriptions, business travel, training events, leases, rent, phone, internet, insurance, asset repairs and more, as long as the period of the expense does not exceed 12 months.

 

Review Stock & Inventory

Regularly examining your stock can identify any damaged or obsolete items. These impaired items will likely impact your trade and profits, therefore be sure to write the items off at the time they are determined obsolete. A few of these could very well hold out for a nice tax deduction come EOFY.

 

Bring Forward Purchases of Assets

Does your business need new assets? Well anytime between now and June 30 could be a great time to purchase them! Small businesses and sole traders are permitted to spend up to $20,000 on a business asset and receive an immediate tax deduction. However, this increased deduction is currently only available until 30 June 2018 … so hurry!

 

Capital Losses

Ok, so this one isn’t exactly a tax deduction, but you may find it valuable if you have sold an investment asset this financial year.

If you have made capital gains by selling an investment asset, you may want to consider selling your poorly performing investments too. Capital losses can counterbalance your capital gains, therefore reducing your total taxable gains come financial year-end. However, we strongly advise you to consult your financial advisor or accounts professional before selling off your home!

If you have any questions regarding tax levies, or to see if you could be eligible for any of these deductions, please do not hesitate to contact our team on 07 3367 3155.

 

 

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