Consider crystallising any unrealised capital losses in the income year if you are anticipating a significant capital gain.
Consider deferring the disposal of shortly-held assets. If an asset is held for at least 12 months, a 50% CGT discount may be available to reduce any capital gains.
Consider whether rollover relief is available to defer any capital gains.
Consider the availability of the small business CGT concessions which can disregard, reduce or defer a capital gain arising from the disposal of an asset which has been used by an entity in the course of carrying on its business.
Review any expenditure incurred on an asset to ensure maximising the cost base of the asset.
If a significant capital gain has been made, an eligible taxpayer may consider contributing some or all of the gain to his or her super fund to reduce the tax payable. This is because a deduction is available for personal superannuation contributions
Salary Sacrifice Arrangement
Consider entering into a salary sacrifice arrangement with your employer for the coming income year, particularly since the repeal of the superannuation surcharge. Salary sacrificing part of your cash salary for non-cash benefits can potentially reduce your income tax liability and result in a better net cash flow.
If you are expecting to derive bonus and/or commissions prior to the close of the income year, consider salary sacrificing these amounts to reduce your tax liability
Superannuation Strategies
Consider splitting concessional superannuation contributions with your spouse to receive your combined super balances in a more tax-effective manner.
Consider entering into a salary sacrifice arrangement with your employer to forego part of your cash salary into superannuation. This potentially can reduce your income tax liability and increase the level of savings in your superannuation account.
Eligible taxpayers who make a personal contribution will receive the Government’s superannuation co-contribution.
If permissible, consider moving assets into a superannuation fund because of the lower tax rate.
Tax Effective Investments
Consider investing in Tax Effective Investments (otherwise known as Agri-Investments such as timber plantations, olive groves, vineyards etc). A taxpayer is entitled to concessions which allow accelerated deductions for these types of investments often resulting in significant tax savings.
Tip: Any choice to invest in Tax Effective Investments should be made based on sound investment principals and not solely on tax. You should discuss these investments with your financial advisor or contact us to arrange a suitable appointment with our advisor.
Note: This is not advice. You should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that formal advice be sought before acting in any of the areas.
