Individuals

  • Motor vehicle log books To reduce your Fringe Benefits Tax or to maximise your vehicle deductions, it is important to keep a log book if you haven't kept one in the last five years. A log book must be maintained for a continuous 12 week period and is valid for five years. For example, if you have not maintained a log book since the 2011, you will need to start recording prior to 30 June 2016, even where the three month period does not finish by 30 June.
  • Donations Businesses receive a deduction for donations to Deductible Gift Recipients. For companies (taxed at 28.5% or 30%) greater tax benefit will be obtained by the business owner making the donation personally if the business owner has income greater than $37,000. If you are planning to make a donation, consider making it before June 30 to receive the deduction in the 2016 year.
  • Prepay expenses Individual taxpayers such as employees and investors can claim a deduction for a prepayment of up to 12 months of expenses. Typically, this includes subscriptions, memberships and interest paid on investment loans. If prepaying interest, make sure you contact your financial institution and arrange the prepayment treatment. Otherwise the payment could be treated as a reduction in the principal of the loan, which is not tax deductible.
  • Rental Property Aim to bring forward your tax deductible expenses and defer your rental income. In particular, consider prepayment of expenses such as interest. Consider obtaining a Quantity Surveyors Report for substantial depreciation and capital works deductions for your rental property. This is the one most overlooked deduction by individuals.
  • Co-contributions Do not forget the Government Co-Contribution of up to $500 if you make a non-concessional (personal contribution) of $1,000 and your assessable income is below $35,454.
  • Superannuation Rebate If your spouse’s assessable income is less than $10,800 then you can make a spouse contribution of up to $3,000 and receive a rebate of 18% or $540 offset against your tax.
 

Lodge tax returns online

ADDRESS

Suite 1, 236 Liverpool Road,
Ashfield, NSW 2131

PHONE

Tel: 61 2 9799 6318
Fax: 61 2 9799 6320

EMAIL ADDRESS

info@essennsolutions.com.au

WEBSITE

www.essennsolutions.com.au