The document provides tips and strategies for individuals and businesses to minimize tax before the end of the financial year on June 30th, as well as changes coming into effect in future years. It discusses opportunities to make superannuation and other contributions, claims deductions for expenses, and manages capital gains and losses. It also outlines reforms increasing small business tax concessions and farm management deposit limits.

1. @@WestcourtConslt westcourt.com.au
Beginning of the end – Proactive tax
[ Tips and Tricks for a pain free EOFY]

4. PART1 -CURRENT PLAYING FIELD
• A review of the common tips to minimise tax before 30 June
-Personal tax
-Business tax
PART 2 – A LOOK TO THE FUTURE
• Where the changes announced on budget night will take us

5. PRE 30 JUNE

7. Personal tax
Superannuation contributions
The matter of how much you can contribute to your superannuation fund without incurring
additional taxation is driven by the Tax Act. The question of how much you should contribute is
driven by the investment proposition and should be done with investment advice.
Concessional contributions cap *
Under 50 years of age: $30,000
50 years of age or more: $35,000
Changes in future section

8. Personal tax
Investments
Capital Gains Tax
If you are looking at selling an asset remember that the taxing date is the date you sign the
contract (generally) not the date the contract is settled.
The impact of the higher tax rates in 2016/17 should be considered in your decision.
The decision to defer accepting a contract for tax reasons should also be compared to the risk of
the purchaser changing their mind.

9. Personal tax
Pre-pay interest in investment loans:
If clients have investment or margin loans, they can pre-pay the interest for the year in advance
to claim a tax deduction.
Rental properties or geared share portfolios.

10. Personal tax
Insurance
Pre-pay deductible insurance premiums:
Income protection insurance – Be prepared for a rainy day.
Premiums can be prepaid in advance for the next 12 months.

11. Personal tax
Donations
If you plan on making a large donation remember that your cannot claim a tax deduction for
donations that exceed your income. And structure your donations into the entity that is paying
tax at the highest rate of tax so that the tax benefit is maximised.
If you are making a donation to a political party the maximum tax deductible donation is
$1,500. you should consider using the threshold among family members and potentially making
a donation in June and in July to use the threshold properly.
A company is not entitled to a tax deduction for a donation to a political party

12. Personal tax
Repairs vs Capital – Rental properties
Any new capital acquisitions will be depreciated over the useful life.
E.g. Acquisition of new air cons or replacing hot water systems because winter has come early are
not deductible in full.
Repairs are deductible in full.

13. Personal tax
Claim work-related deductions - Typical work-related expenses include employment-related
telephone, mobile phone, internet usage, computer repairs, union fees and professional
subscriptions.
Claim home office expenses - When part of your home has been set aside primarily or exclusively
for the purpose of doing work a home office deduction may be allowable.
Claim self-education expenses - Self-education expenses can be claimed provided the study is
directly related to either maintaining or improving your current occupational skills or it is likely to
increase your income from your current employment.
Maximise motor vehicle deductions - If you use your motor vehicle for work-related travel, there
are now only two choices for how you can claim work related travel (cents per kilometre or
logbook)

14. BUSINESS
TAXPerfection is lots of little things done well

15. Business tax
Maximise depreciation deductions
Small businesses can get an immediate tax deduction for nearly all individual assets purchased by
30 June 2017 that cost less than $20,000. This measure is due to expire 30 June 2017.
Depreciating asset that is not immediately deductible (an asset costing $20,000 or more) will be
automatically depreciated at a flat rate of 15 per cent in the first year and at 30 per cent in
subsequent years.
Small business turnover threshold increased to $10m.

16. Staff superannuation
Superannuation is deductible when paid.
It is due 28 days after quarter end (28th Jul, 28th Oct, 28th Jan, 28th April) Late payment no
tax deduction
June quarter super – potential to pay before year end.
Business tax

17. Staff bonuses
If you choose to pay staff bonuses after year end the amount of the bonus should be
quantified and documented prior to 30 June.
The best way to do this is to notify the staff member about the level of bonus payment
owing to them.
Remember to include the impact of superannuation on top of staff bonuses and the payroll
tax position.
Business tax

18. Business tax
Trust distribution minutes
If you operate a trust your deed of trust requires you to document your decision on how the
profit should be allocated prior to the year ending. If you do not document the decision your
trust is taxed at the highest tax rate (49%*).
In years gone by the Tax Office gave a discretion allowing people a few months after year end to
get their affairs sorted and minutes documented. That position has now changed and the trustee
must document the minute prior to 30 June.

19. Business tax
Bad debts
A bad debt is only tax deductible once you write it off on your company records. You must
document your decision prior to 30 June to make it tax deductible. If you do so after 30 June the
debt is tax deductible after 30 June – this includes thinking it is bad before 30 June and then
letting us know after 30 June.
We recommend a directors resolution to document the decision to write off the debt as bad.

20. Business tax
Franking account management
If you have outstanding income tax debts at 30 June you should pay your tax prior to 30 June.
The payment of tax gives rise to a franking credit that can be passed onto shareholders through a
dividend. Simply owing a tax debt will not give a franking credit.

21. Future
Farm management deposit reforms
Amendments to the income tax treatment of farm management deposits (FMDs) apply from 1
July 2016 with new legislation which:
• increases the maximum amount that can be held in FMDs by a primary producer to $800,000
• allows primary producers experiencing severe drought conditions to withdraw an amount that
has been held in an FMD for less than 12 months, without affecting the income tax treatment
of the FMD in the earlier income year, and
• allows amounts held in an FMD to offset a loan or other debt (ie as a result of the
arrangement, a lower amount of interest is charged on the loan than would otherwise be the
case) relating to the FMD owner's primary production business.

22. Business tax
Forecasting tax liabilities
Maintaining awareness of future tax liabilities is important in managing cash flow.
Keeping track of quarterly PAYG Instalments will help to reduce any bill shock at year end.
This is why tax planning is undertaken.

23. THE FUTURE

24. Future
Increase in small business turnover threshold
Increase in the aggregated turnover threshold for access to small business tax concessions to
$10m. These concessions include:
• lower small business corporate tax rate of 28.5% (Proposed to be reduced to 27.5%)
• small business restructure roll-over under Subdiv 328-G of ITAA 1997
• accounting for GST on a cash basis, and
• paying GST by quarterly instalments.
• simplified depreciation rules, including the instant asset write-off threshold of $20,000
available until 30 June 2017.
Reviewed royal assent on the 19th May 2017. Available for the 16/17 financial year

25. Future
Farm management deposit reforms
Amendments to the income tax treatment of farm management deposits (FMDs) apply from 1
July 2016 with new legislation which:
• increases the maximum amount that can be held in FMDs by a primary producer to $800,000
• allows primary producers experiencing severe drought conditions to withdraw an amount that
has been held in an FMD for less than 12 months, without affecting the income tax treatment
of the FMD in the earlier income year, and
• allows amounts held in an FMD to offset a loan or other debt (ie as a result of the
arrangement, a lower amount of interest is charged on the loan than would otherwise be the
case) relating to the FMD owner's primary production business.

26. Future
Extension of 20k Asset write-off
Small businesses can get an immediate tax deduction for nearly all individual assets purchased by
30 June 2018 that cost less than $20,000.

27. AGES CONCESSIONAL [PREV. NON-CONCESSIONAL
UNDEDUCTED] [UNDEDUCTED]
Under age 49 $30,000 $180,000 OR
$540,000 Bring forward
option
50-64 $35,000 $180,000 OR
$540,000 Bring forward
option
65 and over $35,000 $180,000
No bring forward option
Superannuation Limits – Current (up to 30 June 2017)
Future

28. $100,000
[from 1 July 2017}
AGES CONCESSIONAL [PREV. NON-CONCESSIONAL
UNDEDUCTED] [UNDEDUCTED]
Up to 74 $25,000 [from 1 July 2017]
Rolling 5 year cap
75 and over Compulsory super Not eligible to make
guarantee only contributions.
Future
Superannuation Limits – Future (from 1 July 2017)

29. Future
Restrictions on deductions for residential property investments
From 1 July 2017, depreciation deductions for residential plant and equipment (e.g. dishwashers
and ceiling fans) will be limited to investors who actually incur the outlay – not subsequent
owners.
Also from that date, investors will be unable to deduct travel expenses related to inspecting,
maintaining or collecting rent for a residential rental property.

31. Higher concessional contribution caps before 30 June 2017
Asset write off 20k
Prepayments
Manage Capital gains tax implications

32. • Same credible advice
• Same friendly people
• Making family owned businesses great

33. The material and opinions presented should not be used or treated as professional
advice and persons should make their own enquiries in making any decisions
concerning their circumstances.
Westcourt Chartered Accountants expressly disclaims any responsibility for any
damage incurred as a result of any person relying on this information.

34. Craig Seddon
Director
• craig.seddon@westcourt.com.au
• (08) 9221 8811
• 0414 424 969
David Hewitt
Advisor
• david.hewitt@westcourt.com.au
• (08) 9221 8811
• 0450 577 094