TOP UP YOUR SUPERANNUATION – NOW
Have you considered making extra tax-deductible super contribution before 30 June 2023?
Deductible super contributions have the double barrel advantage in that they can help reduce your tax bill while increasing your wealth.
While the current cap for concessional contributions is $27,500 per annum – your personal limit could possibly be higher if you have not maximised contributions in the four previous financial years.
If you would like to know whether you have ‘carried forward concessional contributions’ available, please contact our office.
MAKE A SUPER CONTRIBUTION ON BEHALF OF YOUR SPOUSE
If your spouse’s adjusted taxable income is less than $40,000 per year, then consider making a non deductible superannuation contribution of up to $3,000 into their super fund and receive a rebate of up to $540.
Please note that if you wish to get the benefit of a tax rebate for a contribution this financial year then the payment should be made as soon as possible. Many super funds experience administrative processing delays at this very busy time of year.
INSTANT ASSET WRITE OFF
Please note that the very generous ‘temporary full expensing’ of business assets in the year they were purchased (with no dollar threshold) comes to an end on 30 June 2023. This means that you can purchase items for your business and receive an up-front tax deduction rather than being depreciated over a number of years.
It is important to note the following. For a motor vehicle the maximum you can deduct is $64,741. For all items it is important that they are installed and ready for use prior to the year end in order to be able to claim a deduction.
From 1 July 2023 the ‘Instant Asset Write Off’ makes a return but now the asset must cost less than $20,000. (Please note that this is not yet law).
Low dollar value and irregular gifts can be provided to employees of your business, including yourself, and a tax deduction obtained for the cost of them. The gift cannot be cash or alcohol but it can be a store gift card, hamper or book/music voucher. The ATO applies some rules in order for the gift to be treated as tax-free. These are that any one gift must be no more than $299; and their provision should be irregular.
You may like to consider keeping a logbook to track the business use of the car you are driving. The logbook needs to track every journey in the car for a 12 week period, with each trip noted down as either work-related or private. At the end of 12-weeks the work-related kilometers are divided by the total kilometres to get a percentage. You can then claim that percentage of your car costs including the decline in value of the car (depreciation), fuel, registration, insurance etc. Without the logbook there are other methods for claiming car expenses, but the logbook method usually gives the best outcome. Once you have a logbook you can rely on it for up to 5 years before you need to re-do it again (another 12-weeks needed).
Here are some free logbook apps for smart phones that you may be able to use to get one started & once completed please forward a copy to our office: