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If you are eligible to claim family assistance payments for the 2014–15 financial year you must lodge your lump sum claim with the Department of Human Services (Centrelink) by 30 June 2016. Family assistance payments include family tax benefits, child care benefits and single income family supplements. We encourage you to lodge a lump sum...

The Federal Budget handed down last night has attracted a great deal of interest but principally because it is a pre-election budget and the first for both Treasurer Scott Morrison and Prime Minister Malcolm Turnbull. Like all budgets, many of the measures were either announced or signaled prior. However, there were a few surprises, particular...

A good strategy to reduce tax payable is normally to accelerate any income tax deductions into the current income year, which will reduce overall taxable income in the current year. The tax rates for resident (adult) individual taxpayers for the 2014/15 income year are as follows: Taxable Income threshold Tax payable* 0 – $18,200 Nil...

The following outlines common types of deductible expenses claimed by individual taxpayers, such as employees and rental property owners, plus some strategies that can be adopted to increase deductions for the 2014/15 income year. 1. Depreciable plant, etc, costing $300 or less Salary and wage earners and rental property owners will generally be entitled to...

Many of our business clients like to review their tax position at the end of the income year and evaluate any year-end strategies that may be available to legitimately reduce their tax. Traditionally, year-end tax planning for small businesses is based around two simple concepts – i.e., accelerating business deductions and deferring income. However, Small...

Non-SBE business taxpayers should endeavour to maximise deductions by adopting one or more of the following strategies: • Prepayment strategies; • Accelerating expenditure; and • Accrued expenditure.

Any part of an expense prepayment relating to the period up to 30 June is generally deductible. In addition, non-SBE taxpayers may generally claim the following prepayments in full: – expenditure under $1,000; – expenditure made under a ‘contract of service’ (e.g., salary and wages); or – expenditure required to be incurred under law. Prepayments...

This is where a business taxpayer brings forward the expenditure on regular, on-going deductible items. However, business taxpayers are generally entitled to deductions on an ‘incurred basis’. Therefore, there is generally no requirement for the expense to be paid by 30 June 2015. As long as the expense has genuinely been incurred, it will generally...

Non-SBE taxpayers (and some SBE taxpayers) are entitled to a deduction for expenses incurred as at 30 June 2015, even if they have not yet been paid. The following expenses may be accrued: • Salary or wages and bonuses – the accrued expense for the days that employees have worked but have not been paid...

Deductions can be maximised for SBE business taxpayers by accelerating expenditure and prepaying deductible business expenses. Former STS taxpayers who have continued to use the STS cash method since before 1 July 2005 cannot accrue expenses, but other SBE taxpayers on an accruals basis can accrue expenses (see above regarding accruing expenditure).