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Maximize Your Tax Savings and Prepare for the Year Ahead

By June 14, 2024June 18th, 2024No Comments

As we approach the end of another financial year, it’s time to strategize for maximizing tax deductions and planning for the upcoming changes. At Treysta Wealth, we’re here to guide you through this process, ensuring you make the most informed decisions for your financial future. Let’s dive into some key considerations:

Last-Minute Tax Deductions

Feeling unsure about where to start with last-minute deductions? Don’t worry; we’ve got you covered. Here are some ideas to consider:

  1. Top up your super: Contribute up to $27,500 to your super fund to receive a personal or business tax deduction, no work tests required.
  2. Instant asset write-off for small businesses: Access the instant asset write-off for assets costing less than $20,000 (possibly $30,000) if used or installed ready for use before 30 June 2024. (Subject passing through parliament.)
  3. Prepay expenses: Consider prepaying expenses such as rent or interest to reduce your taxable income.
  4. Review aged debtors: Review your aged debtors and consider writing off bad debts to receive a deduction.
  5. Home office usage: If you operate from a home office, don’t forget to keep a diary/record of your home office use to help claim relevant expenses.

Important Updates for SMSF Pension Mode and Super Guarantee

If you’re in SMSF Pension mode, remember to make the minimum pension withdrawal before 30 June 2024.

Additionally, starting July 1, 2024, the super guarantee rate will increase to 11.5%, gradually rising to 12% by July 2025.

Single Touch Payroll (STP) Phase 2

STP Phase 2 is now in place. Employers must report through STP, with reporting frequency options including each pay day, month, or quarter.

The quarterly reporting concessions for micro employers will only be available to micro employers who meet certain eligibility requirements, which is now the need for exceptional circumstances to exist, and can apply for this concession through the online deferral tool.

If you haven’t started reporting through STP yet, now is the time to do so. If you have any questions or want to request a meeting to discuss further, please contact us.

Fringe Benefits Tax (FBT) for Electric Vehicles

Providing private use of an electric car meeting specific conditions can exempt you from FBT. Eligibility criteria includes:

  • The car a is zero or low emissions vehicle
  • The first time the car is both held and used is on or after 1 July 2022
  • The car is used by a current employee or their associates (such as family members)
  • Luxury car tax (LCT) has never been payable on the importation or sale of the car ($89,332 up to 30 June 2024, then $91,387)

Company and Individual Tax Rates

Stay updated on the latest tax rates for both companies and individuals for the current and upcoming financial years.

Company Tax Rates:
  • Trading entity – 25%
  • Investment entity earning passive income such as rentals or trust distributions – 30%

 

Individual Tax Rates:

2023-2024 (not including Medicare Levy of 2%)

Taxable IncomeTax on this income
0 – $18,200Nil
$18,201 – $45,00019c for each $1 over $18,200
$45,001 – $120,000$5,092 plus 32.5c for each $1 over $45,000
$120,001 – $180,000$29,467 plus 37c for each $1 over $120,000
$180,001 and over$51,667 plus 45c for each $1 over $180,000

 

2024-2025 (not including Medicare Levy of 2%)

Taxable IncomeTax on this income
0 – $18,200Nil
$18,201 – $45,00016c for each $1 over $18,200
$45,001 – $135,000$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000$31,288 plus 37c for each $1 over $135,000
$190,001 and over$51,638 plus 45c for each $1 over $190,000

 

Small Business Skills and Training Boost

Small businesses with an aggregated annual turnover of less than $50 million can deduct an additional 20% of eligible external training course expenditures for employees, by registered providers in Australia. Take advantage of this boost available until 30 June 2024.

At Treysta Wealth we’re committed to helping you navigate these changes and optimize your tax position. If you have any questions or need assistance, please don’t hesitate to reach out to us. Your financial success is our priority.

Written by Gary Cooper, Director of Accounting (Treysta Accounting)

 

Disclaimer: any information we share is general in nature and does not take into account your personal situation. You should consider if the information is appropriate for your needs and, where appropriate, seek professional advice.

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