Completing the Advanced Interpretation training recently led me to reflect on some of the ways Balance at Work clients have used the assessments in the time we've been offering this service.

 

The various applications clients have found for this tool really confirm how practical and flexible it is.  Here are just a few examples: 

June 30 is rolling around again so it is time to start thinking and planning for your 08/09 tax return. By planning ahead and taking a few simple steps you can reduce the stress at tax time and maybe even save yourself a few dollars too.

 
You should consider some of the following strategies as a means of legally minimising your tax liability. Do these things before 30 June in order to reap the associated tax benefits.

Meet both mandatory and maximum superannuation contribution criteria: In order to be claimed as a deduction in the current tax year, employer contribution payment/s must be made prior to 30 June. By contributing up to the annual "age-based limits" you can reduce your business' taxable income and potentially gain at least a 30% deduction.

 
Prepaid expenditure: If your business is eligible then you may be entitled to pre-pay expenditure on items such as rent, insurance premiums or advertising, for up to 12 months and claim these payments as an immediate deduction.

Realise capital losses to reduce capital gains tax: To save on capital gains tax (CGT) and free-up money for more suitable investments, you could consider selling poor performing assets that no longer suit your circumstances. Doing this, allows you to use the capital loss you have incurred to offset a realised capital gain from another asset in the same financial year.

Purchase equipment: If your business revenue is less than $2 million then any assets purchased before 30 June that cost less than $1000 can be claimed an immediate deduction. Additionally, in the recent federal Budget the Government announced that for eligible assets purchased before 31 December 2009 and installed before 31 December 2010, small businesses are now able to claim a bonus 50% deduction.

Defer Income: If you believe that you will be in the same or lower tax bracket next year, you should consider deferring some income until the following year. You could save yourself from being pushed into a higher income tax bracket and getting hit with a bigger tax bill.

Important tax time reminder:
Motor Vehicle Log Books: If you do not pay Fringe Benefits Tax under the statutory method for your business' motor vehicles then you must keep a log book for 12 continuous weeks. Log books remain valid for a maximum of 5 years, so after this period of time you are required to prepare another. It is also important that when purchasing a new logbook for completion that you ensure it is ATO compliant. Most logbooks for sale are but it would be unfortunate to complete your 12 weeks of logging only to realise that it is not compliant.