June 30 To-Do List - Investors & Individuals
June 30 is just around the corner, we have put together a handy list of to-do items for you to consider prior to Financial Year end.
This article will concentrate solely on Individuals and Investors
Whilst this list is a great place to start, please remember if you have any queries we are more than happy to help
CONCESSIONAL SUPER CONTRIBUTIONS CAP
From 1 July 2017, the concessional contributions cap is $25,000 for everyone.
Previously it was $35,000 for people 49 years and older at the end the previous financial year and $30,000 for everyone else.
CLAIMING DEDUCTIONS FOR PERSONAL SUPER CONTRIBUTIONS
For personal contributions made prior to 1 July 2017 you cannot claim a deduction if, during the income year, you obtained 10% or more of the total of the following as an employee:
your assessable income
your reportable fringe benefits
your total reportable employer superannuation contributions
This is the case regardless of whether your employer has paid super on your behalf
Eligible contributions (as above) represent a 100% tax deduction, once again be mindful of the limit for concessional contributions for this financial year
The information above is taxation advice only regarding superannuation caps as provided by Australian Taxation Office. Please be advised that due to ASIC Financial Regulation RG146, Financial advice can only be provided by fully licenced individuals.
PROPERTY DEPRECIATION REPORT
If you have an investment property, a Property Depreciation Report (prepared by a Quantity Surveyor) will allow you to claim depreciation and capital works deductions on the property assets.
Please be aware as part of the Federal Budget 2017, changes to the allowable deductions are as follows:
limited to properties that were currently held or exchanged upon prior to 7.30pm Tuesday 9th May 2017
Investors who purchase a newly-built investment property as the first owner
Investors who move out of their principal place of residence, and convert it to an investment property
Investors who purchase an established property and replace the acquired assets with new assets they purchase themselves (eg. renovate and replace old assets with new assets);
Investors who own only commercial investment properties
Investors who previously had tax deductions for travel expenses related to their investment property will no longer be able to make these claims as at July 1 2017. Now is the time to take advantage of this deduction
The travel deductions include travelling to collect rent, maintain or inspect a premise
PREPAY EXPENSES AND INTEREST
Expenses relating to investment activities can be prepaid before 30 June 2017. You are able to prepay up to 12 months of interest (please refer to your financial institution) before 30 June on a loan for a property or share investment and claim a tax deduction for this financial year.
Other expenses in relation to your investments can be prepaid before 30 June, these include rental property repairs, council and water rates and body corporate expenses
MOTOR VEHICLE EXPENSES
As per 2016 Tax Year, there are two methods for motor vehicle deductions:
Set Rate – 5,000 klms
Log Book Method
To claim the log book method you must ensure that you have kept an accurate and complete Motor Vehicle Log Book for at least a 12-week period. The start date for the 12-week period must be on or before 30 June 2017. (please note that log books are valid for 5 years). You should make a record of your odometer reading as at 30 June 2017,and keep all receipts/invoices for your motor vehicle expenses. Fuel usage can be estimated, but all other expenses must have documentation (receipts and invoices) to be claimed
PRE -PAY INSURANCE PREMIUMS
Income protection insurance replaces up to 75% of your salary if you are unable to work due to sickness or an accident. The insurance premium is generally tax deductible. If you do not currently hold any insurance you will need to consider pre paying the insurance in full to claim 100% deduction
As with Insurance premiums, if you are considering taking out Private Health for the first time or after an extended lapse in policy, consider pre paying the premium to ensure that you can claim the 10% deduction in this financial year
WORK RELATED EXPENSES
Ensure you keep copies of any receipts for work-related expenses such as uniforms, training courses and learning materials, tools, computer equipment as these may be deductible for tax purposes.
Consider making deductible gifts before June 30, these donations or gifts must comply with ATO requirements as follows:
voluntary gifts of $2 or more made to an approved organisation
Approved organisations include:
certain funds, organisations or charities which provide help in Australia
some overseas aid funds
school building funds
some environmental or cultural organisations.
The above list is not exhaustive and is a guide only, if you have any questions please call us on 07 5502 6673