Tax Tips for the 2014 Year

Many of you are business owners and investors.

As the financial year draws to a close, it’s time to get serious about your tax position. This guide covers actionable year-end tax strategies—but remember, the best results come from forward-thinking tax planning, not last-minute patch-ups.

Even if your business or investment structures (trusts, companies, partnerships) once served you well, they may no longer be fit for purpose. Now is the time to speak to your accountant and make sure your setup is still working for you.

And please—avoid impulsive tax “solutions” like managed plantations or horse breeding schemes. Many have paid the price. Effective tax planning starts well before 30 June.

Smart Tax-Saving Strategies to Consider Now

1. Claim All Eligible Deductions

• Home office, internet, phone, and professional subscriptions

• Investment-related travel and interest costs

2. Review Motor Vehicle Expense Methods

• Logbook method is often more tax-effective than FBT or 12% of value

• Choose the right method and keep complete records

3. Maximise Depreciation

• Write off assets no longer in use

• Assets under $1,000 can be fully deducted immediately by small businesses

• Consider a depreciation schedule for investment properties

4. Defer Income Where Possible

• Pushing income to the next financial year can reduce this year’s taxable income—but assess cash flow impact

5. Accelerate Deductions

• Pay deductible expenses in advance, like interest or rent

• Prepay expenses up to 12 months in advance where allowable

6. Maximise Superannuation Contributions

• Make concessional contributions up to the annual cap

• Consider spouse contributions to maximise benefits across your household

7. Leasing Business Premises to Super Fund

• Ensure market rent is paid if your super fund owns your business premises

• Make the business responsible for all outgoings to maximise deductions

8. Consider Non-Concessional Super Contributions

• Undeducted contributions can support long-term retirement strategies

9. Review Salary Sacrifice Arrangements

• Ensure fringe benefits and deductions are being handled by the right entity

10. Finalise Trust Distribution Resolutions

• Resolutions must be documented by 30 June

• Use streaming provisions (if the deed allows) to allocate franked dividends or capital gains to the most tax-efficient beneficiaries

11. Be Compliant with Division 7A

• Avoid triggering deemed dividends—ensure loan agreements are properly documented for any funds taken from your company

12. Pay Wages and Super Before 30 June

• Declare wages now and pay the associated super, even if the full wage is credited to your loan account due to cash constraints

13. Write Off Bad Debts

• Don't carry over debts that are unlikely to be recovered—write them off before 30 June

14. Offset Capital Gains

• Realise capital losses before year end to offset any gains

• Alternatively, defer selling profitable assets until after 1 July

15. Claim Investment-Related Costs

• Include travel to AGMs, bank charges, interest on investment loans

The Best Advice? Talk to Your Accountant Early

Don’t take advice from “the guy at the club.” Speak to someone who understands the tax laws—and your financial situation. Planning early means better outcomes and fewer nasty surprises.

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.