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The best tax planning should commence in July; that is, as early as possible in any financial year, not near the end of it. Proper tax planning is more than just finding bigger and better deductions – and the best tips are those that set your tax affairs in order for future income years. Not all of the following tips will suit your circumstances, but as a list of possibilities they may get you thinking along the right track. Of course check with a tax professional if you need further information. Make Use of Your Tax Agent No one knows your affairs better than yourself, so you will recognize if any of the following tax tips applies to your circumstances. But no one is better informed as to what is appropriate to your situation than your tax agent. Also, a tax agent’s fee is an allowable deduction in the year it is paid. Every individual taxpayer is required to lodge their return before October 31, but tax agents are given more time to lodge, which can be a handy extension to the payment deadline. Of course, if you are sure you will be getting a refund, there is no reason to delay. So in these cases it is worth getting all of your information to your tax agent as soon as you can after July 1. Pre-Pay Investment Loan Interest See if you can negotiate with the lender of your investment property or share loan to pay interest on borrowings upfront, thereby giving you a deduction this year. Most taxpayers can claim a deduction for up to 12 months ahead. Bring Forward Expenses, Defer Income The exception will arise if you expect to earn more next financial year. In that case, it may be to your advantage to delay any tax-deductible payments until next financial year, when the financial benefit of deductions could be greater. Investment Property Many expenses stemming from owning a rental property are claimable, so it can be helpful to bring forward any expenses before June 30 and claim them in the present financial year. Use the CGT Rules to Your Advantage If you have made an crystallized any capital gain from your investments this financial year, think about selling any investments on which you have made a loss before June 30. This way the gains you made on your successful investments can be offset against the losses from the less successful ones, reducing your overall taxable income. Split Super Contributions with Your Spouse Most concessional super contributions can be split between members and spouses. Education Tax Refund If you have school age children, you should investigate the education tax refund scheme. You may qualify for a refund of 50% of expenses, up to a maximum of $409 for primary school children and $818 for secondary students. R&D Tax Credit The Research and Development Tax Credit provides a 45% refundable offset to businesses with an annual turnover under $20 million for eligible R&D expenditure. The tax tips are by no means exhaustive. So, it is important to consult your tax agent to determine the deductions that you are eligible for and the best tactics to have a great tax year. For more information about Professional Medical Insurance and Nursing Malpractice Insurance please visit our website http://www.taxforhealthprofessionals.com.au/
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