With 30 June fast approaching, it is now a good time to consider a few of the things below that will have an impact on your compliance and tax position for the year.
With 30 June fast approaching, it is now a good time to consider a few of the things below that will have an impact on your compliance and tax position for the year.
If you are an Individual Taxpayer
1. Personal Tax Rates
The personal tax rates remain as previously announced for the 2020-21 year as follows:
- 0 to $18,200 — Nil
- $18,201 to $45,000 — 19 cents for each $1 over $18,200
- $45,001 to $120,000 — $5,092 plus 32.5 cents for each $1 over $45,000
- $120,001 to $180,000 — $29,467 plus 37 cents for each $1 over $120,000
- $180,001 and over — $51,667 plus 45 cents for each $1 over $180,000
2. Low- and Middle-Income Tax Offset
The low- and middle-income tax offset of up to $1,080 which was due to cease on 30 June 2021, will be extended until 30 June 2022.
3. Consider Additional Super Contribution up to the Cap
Both employees and self-employed individuals can claim a tax deduction annually to a maximum of $25,000 for personal superannuation contributions.
4. Work Related Expenses
Ensure you keep a record of all the work-related expenses so you do not miss out on deductions but please don't buy any deductibles that you don't need.
5. Working from Home
Until 30 June 2021, you can claim a deduction of 80 cents for each hour you work from home due to COVID-19, as a representation of all additional deductible running expenses.
For Businesses
1. Instant Asset Write-off
Businesses with annual turnover of less than $5 billion can claim an immediate deduction for the full uncapped cost of an eligible depreciable asset, in the year the asset is first used or is installed ready for use.
2. Pay June Quarter Super by 30 June
In order for small business owners to claim the tax deduction on super contributions made on behalf of employees, the super has to be paid before 30 June.
3. Trust Resolution
Prior to 30 June every year, the trustees of discretionary trusts are required to make and document their resolutions on how the income from the trust is distributed to its beneficiaries.
Please note that the information provided above is general only and does not constitute personal financial advice.