It is that time again when you may need to focus on reducing your tax payable for the 2012 financial year.
Below are the things you need to do now, sure you can wait until the last minute and be upset with your adviser when it does not happen on time or you can act now and pay less tax this year.
- Make your concessional contributions to super. Make sure you have contributed up to your limits, under 50 $25,000 over 50 $50,000. This is very important for any self employed people. Remember 01/07/2012 is too late to claim the deduction.
- Check your capital gains tax position. If you have a capital gain then you should first check to see if you have any carried forwarded losses from previous years. Next look to sell out any under performing stocks in your portfolio to book the loss.
- Prepay interest on your investment loans. This does two things, it gets you a tax deduction in this year and second you normally receive a lower interest rate.
- Prepay your income protection insurance in advance.
- Make a co-contribution to super for your spouse. You put in $1,000 and the government gives you $1,000, as long as your spouse’s income is below $61,920.
If you take care of these things now you will have a smile on your face when you receive your tax refund.
Of course if you need any advice or help getting these things done, give us a call, 07 4771 4577.