Tips to reduce your Tax Bill

• Prepay expenses: By prepaying 12 months of tax-deductible expenses, you can bring the deduction forward into the 2018/2019 financial year. A good example of this is income protection insurance but other options are prepaying interest on margin loans or investment loans.
• Write off Bad Debts
• Maximise Superannuation Contributions
• Trading stock: Consider whether it would be beneficial to revalue trading stock at year-end, noting that stocks can be valued at:

  1. cost
  2. market selling value, or
  3. replacement value.

• Delay income: If you can, try to defer income until after June 30 to avoid paying tax this financial year. As an example this may be done by reviewing term deposit maturity dates or legitimately deferring income by holding off issuing invoices until July 1.
• Charity: If you are thinking of donating money, you may be able to receive a tax deduction for gifts and receive that deduction this financial year
• Repairs and maintenance: If you hold an investment property, consider doing minor repairs and maintenance prior to 30 June.
• Buy health insurance if you are a high-income earner: To avoid the Medicare Levy Surcharge, high-income earners should take out private health cover. To avoid the surcharge for the entire year, the insurance needs to be held for the entire year