Callaghans Top 2019 Tax Tips

Number 1 – Small Business Write Off

  • The Small Business Write Off is now $30,000
  • Get Finance through our Mortgage broker – Tegan Snaidero.
  • Number 2 – Government Co-Contribution

  • Must Be Working.
  • Must Earn Less Than $52,697.
  • There is an age test.
  • To Get $500, Need to Earn Less Than $37,697.
  • Potentially contribute $1,000 to get $500 from the government
  • Number 3 – Spouse Contribution

  • If Spouse Earns Less Than $37,000; Maximum $3,000 Will Provide an Offset of 18% or $540.
  • The Maximum Rebate Reduces to Nil as Earnings Exceed $40,000.
  • Obviously After Tax Contribution.
  • Number 4 – Tax Deductible – Personal Contribution or Salary Sacrifice

  • No longer a 10% test.
  • 15% as Opposed to Marginal Rate.
  • Accessibility of the Funds.
  • Do it Before 30 June!!
  • Cap $25,000 inclusive of Super Guarantee.
  • Number 5 – Defer your income

  • Self-employed delay billing.
  • Don’t compound the issue for next year.
  • Number 6 – Make an after tax contribution to super

  • $100,000 or $300,000 over 3 year period (Bring forward)
  • 15% Earnings Tax Rather Than Marginal Rate.
  • Under 65.
  • 65 to 75 need to meet the work test work test.
  • Compounding Returns in better structure.
  • Number 7 – Monitor Bad Debts

  • Look to write off bad debts.
  • Larger Accruals Based Businesses.
  • Number 8 – Claim Professional Advice When Starting up a Business Immediately

  • Professional Services such as legal and accounting fees are deductible rather than over a 5 year period.
  • Number 9 – Realise potential Capital Losses if you also have a capital gain

  • If You Have Made a Gain Selling an Asset. Consider Selling an Asset That Would Give a Capital Loss.
  • Allows the Loss to be Used to Offset the Amount of the Gain.
  • Reduces the Total Tax Payable.
  • Number 10 – Pre Pay 12 Months Worth of Expenses

    These Can be:

  • Margin Loan Interest
  • Income Protection Premium
  • Accounting Fees
  • Businesses prepay for Travel and Conferences
  • Bring Your Deduction Forward Into This Year.

  • If you’d like to find out more on how these tips could affect you, contact us on 02 6256 6000 and speak to one of our accountants about what you could do for your 2019 Tax Return

    Please note these tax tips are not advice, and that you should speak to an accountant to find the tax consequences for your situation.