Tax Planning for Non Time Travellers

Are you able to travel back in time? If the answer is no, then the time for you to tax plan is now; April - May. There is no point in going to see your accountant in July or August to ask about how to reduce your tax bill because unless you have a time machine there is nothing that can be done! However if you seek advice now. You can take action to reduce your tax bill without having to hitch a ride back in time. Action such as make a personal deductible contribution to your superannuation account. Or you may be able to prepay some expenses such rent or interest on investment loans, or, you may be able to bring forward some capital investment up to $150K.

If you are self employed you can put in up to $25K and claim a tax deduction. If you are an employee you can contribute the difference between what your employer has contributed on your behalf and $25K. For example, if your employer has contributed $10K you can contribute another $15K and claim a tax deduction of $15K.

A quick profit and loss will give you an idea of what your income after expenses will be and whether or not you need to do some tax planning.

Want to know more? Call us at Payneham Financial Services on 8362 2626 or des@pfsfp.com.au