Leenane Templeton – Newcastle Business Accountants, Business Advisors & Financial Planners

Tag: EOFY

  • Boosting A Spouse’s Super Before The EOFY

    Boosting A Spouse’s Super Before The EOFY

    You might want to top up your spouse’s superannuation for plenty of reasons.

    Maybe you’ve accumulated more super than they have and want to even things out for retirement. Or perhaps your spouse is older and you’re keen to access those funds sooner. Maybe they had to take a career break, and you want to keep their balance up. 

    Whatever the motivation, it’s helpful to know that the super system allows for this kind of strategic planning – but there’s a deadline to keep in mind.

    Under current superannuation rules, you have until 30 June to instruct your fund to roll over up to 85% of your previous year’s concessional contributions into your spouse’s super account.

    Concessional contributions include any super contributions your employer makes and any personal contributions you’ve made and claimed a tax deduction for. When transferring these to your spouse, you can only move up to 85% of the amount, because a 15% contributions tax has already been deducted.

    Even if you’ve used the carry-forward concessional contributions rule to make a larger deductible contribution in a particular year, you can still split 85% of the total amount you claimed a deduction for. It’s a handy strategy, especially if one partner is behind on their super savings.

    But, notably, this isn’t a once-off opportunity. You can keep doing it each year until your spouse turns 65.

    Important Things to Keep in Mind

    Not all super funds support contribution splitting unless your spouse is also a member of the same fund. So it’s essential to check with your provider to see if they allow spouse contribution splitting, and to request the relevant forms or procedures.

    If you have a self-managed super fund (SMSF), it’s much easier – we can handle the whole process for you.

    Want to know more about superannuation before the end of financial year? Why not speak with your LT licensed adviser about the subject?

    Disclaimer
    The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.

  • 2017 year end tax tips

    2017 year end tax tips

    Capital losses
    Selling poor performing assets may enable you to bring forward a tax loss that can be offset against any capital gains made throughout the financial year.

    Write-off bad debts
    To obtain a bad debt deduction, a debt must not be merely doubtful and must be written off as bad during the year of income in which the deduction is claimed. The debt must have been previously included as assessable income.

    Trust resolutions
    Trustees are required to make trust resolutions before 30 June in relation to how trust income will be distributed among beneficiaries.

    Prepaid expenses
    For small businesses, you can bring forward operating expenses, such as rent, insurance, repairs and office supplies that cover a period of no more than 12 months.

    Superannuation strategies
    Review your super strategies before year end to maximise your contribution caps, roll-over capital gains and review your eligibility for the spouse contribution tax offset and government co-contributions.

    Write-off obsolete inventory
    Slow moving, damaged and obsolete stock must be written off prior to 30 June to claim a tax deduction.

    Claim self-education expenses
    Self-education expenses, such as course fees, textbooks, stationery, etc. are tax deductible if your study is work-related or if you receive a taxable bonded scholarship.

    Small business CGT concessions
    Capital gains tax (CGT) concessions may apply to small businesses when an active asset is disposed of. There are four types of concessions; small businesses can apply as many concessions they are entitled to until the capital gain is reduced to nil.

    Employer super contributions
    Employers must pay all superannuation guarantee contributions for employees before 30 June to receive a tax deduction in 2017.

    PAYG income tax instalments
    Small businesses should review their PAYG income tax instalments and notify the ATO if expected profit will be higher or lower than previous financial years.

    Home office expenses
    Individuals operating businesses from home may be entitled to claim deductions for a number of expenses including room utilities, business phone costs, occupancy, and motor vehicle expenses.

    CGT roll-over relief
    After 1 July 2016, small business owners have greater flexibility in changing the legal structure of their business. Small businesses can defer gains or losses that would otherwise be realised when business assets are transferred from one entity to another.

    For more information, contact us at Leenane Tempelton on 02 4926 2300 or email success@leenanetempleton.com.au