Tax Time Tips for 2019


For the last few years, Dr Steve Enticott has given us some great tips for tax time. Here are his updated pearls of wisdom for 30 June 2019. They could save you lots of money.

The CIA Tax Checklist
The BIG tip is review the checklist and pull out a copy of last year’s tax return for a prompt to last minute tax deductions and for collating the data for this year’s tax return.

Co-contributions for super is something you should DO.
A 50% matching rate on up to $1,000 of after-tax contributions, so a maximum amount $500 FREE from the ATO into your super!! Income thresholds must be below $52,697. More info.

Small Businesses
Prepay your expenses where you can and don’t be too hasty getting out your invoices prior to June 30 if it’s been a great income year.

Don’t forget the INCREASED to $30,000 immediate deduction on business assets has again been extended another 12 months (2019) for those with a turnover below $50m.

These can be counted on Cost Price, Replacement Price or even Actual Values which is one of our greatest tax planning tools for those that carry stock. Get counting!

Super contributions to be claimed in this tax year.
They need to be paid WELL before June 30 (i.e. by mid-June) and yes in many cases you should contribute to Super for example; An average earner saves 19.5% of tax on their contribution, so even if they put the money into the safe cash option of the fund they have already had one great investment year! However, if you are bit on the younger side (burdened with a lot of bad debt) then speak to us about doing the numbers on Super contributions before you do.

Make sure you have paid for all your work-related expenses prior to June 30. Try to bring costs forward when you’ve had a great income year to smooth the tax pains.

Made a capital gain during the past year?
For example, the sale or part sale of a business (including investments the business has made), shares or a property. If the answer is a ‘yes’ then you should be thinking about your options for managing the CGT liability. Start by looking for capital losses to offset the CGT liability (or losses carried forward from prior years) and consider selling out losses before June 30 to offset gains – call us to discuss other methods.

Medicare levy surcharge and Private Health Insurance Rebate thresholds
For the rates of Medicare levy surcharge that applies, or the amount of rebate you are entitled to, see the rebate and surcharge levels applicable for 2018/19 below.

- Single parents and couples (including de facto couples) are subject to family tiers.
- For families with children, the thresholds are increased by $1,500 for each child after the first.

No major changes for 2020 tax year (phew!). The concessional cap into super is $25,000 which includes super SG and salary sacrifices. Don’t forget personal super contributions can also be claimed as a deduction under the same limit.

For under 65s they may be able to also contribute $300,000 non-concessional all at once*.
For over 65s they will need to pass the work test, and forget about it over 75 sadly.

*Superannuation has become so complex; never contribute until you’ve cleared it with your advisors.

Superannuation Spouse Contribution of $3,000
The amount of the offset is 18 per cent of the spouse contribution you make (max. offset of $540) reducing your own tax. Spouse income must be under $37,000 to get the full offset, then it gradually reduces to zero at $40,000. Again, there are always other conditions so check with CIA first to avoid disappointment.

Don’t forget!
Sunglasses, hats and sunscreen for taxpayers that work in any outdoor occupation (including driving) - they are tax deductible. However they cannot be claimed unless you keep the receipt!

Repairs and maintenance on investment properties
Consider bringing forward so you can enjoy your tax deduction in the current financial year.

Pre-paying Interest
Say, on a loan of $300,000 it may cost $15,000 but it could get you up to $7,350 back as a tax refund this year. Requires a negotiation with your lender.

Claim Everything
This one each year is a bit tongue in cheek, though correctly claiming expenses is our expertise. Your job is to think of absolutely anything that has a connection with your incomes and let us measure the appropriateness of claim.

(Shouting to get your attention!) is now a requirement for every employer from 1/7/19. We have an information email if you need further advice.

Super Splitting
Topping up your spouse’s retirement savings account with some of your own super contributions can be a great way (for some) to help them save for life after work and possibly save tax in the process. Refer to your Super Fund for an application on how to do so.

Want to know more?

Dr Steve Enticott is the natural person licenced to give the advice and is Sole Director of Logicnet Pty. Ltd. His ASIC Authorised Representative No. is 379 754. CIA Wealth is the business name of Logicnet Pty Ltd.
This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner.