2020 YEAR END TAX PLANNING
Time is running out to determine if there is any scope to reduce your 2020 year-end tax liability.
Tax minimisation strategies encompasses a number of different approaches to validly reducing your 2020 tax liability without having to take on excessive risk.
Some simple strategies include capital investment – as changes to the instant write off limit mean investments up to $150,000 can be written off in the 2020 financial year rather than being depreciated over the life of the asset. This limit is in place until 31 December 2020.
There are also opportunities to increase your super contributions up to the $25,000 limit and claim a deduction for the personal contribution. From 1 July 2018 if you have a total superannuation balance of less than $500,000 on 30 June of the previous financial year, you may be entitled to contribute more than the general concessional contributions cap and make additional concessional contributions for any unused amounts. The first year you will be entitled to carry forward unused amounts is the 2019–20 financial year. Unused amounts are available for a maximum of five years, and after this period will expire.
From income deferral to pre-paid expenditure, timing of crystalizing capital losses to deferring capital gains and writing off bad debts.
Cashflow planning is also an important consideration i.e. we can calculate your estimated tax liability and defer your tax assessment so as you can plan your cash flow and alleviate any shock or stress attached with having to fund payment of your tax liability.
If these strategies could be of benefit, to you or your business, please feel free to contact us to arrange an appointment.
Also…please feel free to contact us to make an appointment to have your and / or your business tax return and financials prepared and lodged for the 2020 year-end.
