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LAST MINUTE TAX PLANNING TIPS!

30 June is fast approaching, get the most of what's left of the financial year by
following out last minute tax planning tips!

1.  Extra deduction under Investment Allowance

The new investment allowance provides an additional deduction of between 30%
and 50% for the year ended 30 June 2009 depending on whether or not you are
considered a small business entity. 

To get the benefit of the deduction in the 2008/09 financial year, the asset must be
used in your business or at least installed ready for use before 30 June 2009.  

If you do not qualify as a small business entity (turnover of your business and related
entities of less than $2m) you must be "committed" to the investment before 30 June
2009 to qualify for the 30% allowance.  Small businesses have until 31 December 2009
to commit to the investment and qualify for the 50% allowance. 

2. Take advantage of higher deductible super contribution thresholds

From 1 July 2009 the maximum deductible superannuation contributions are
reduced by half.  Of course cash is tight at present for most businesses but, if you are
entitled to make deductible superannuation contributions you may wish to make
the most of the higher contribution thresholds by 30 June 2009. Click here

The fund must receive the money by 30 June 2009 in order for the contribution to be
deductible.  Please talk to your adviser at UHY Haines Norton before making any
contributions to ensure you meet the deduction requirements.

3. Extra deductions by prepaying expenses

Small business entities (turnover of your business and related parties of less than
$2m) or passive investors (rental property or shares) may be eligible to claim an
immediate deduction on certain prepaid expenses. click here. A small business can
prepay services like insurance, or an investor could prepay interest and also have
the benefit of locking in their interest at a fixed rate for one year.  To be eligible, the
service period covered by the prepayment must be for a period of 12 months or less.

4. Clear underperforming or loss assets

Have you made a capital gain during the year? If so, you may wish to sell
underperforming capital gains tax assets to offset capital losses against
realised capital gains.

Review your depreciation schedule and scrap any old assets.  Any loss on the
scrapping of these assets can be used to reduce other income.

Don't forget to undertake a stocktake as at 30 June and take into account any
stock which is now obsolete.

5. Defer income or bring forward expenditure

The oldest tax planning strategies in the book involve pushing income into the next
financial year and bringing forward expenses into June. Consider delaying the
invoicing of income into the new financial year or, if you are planning on doing
some repairs to equipment, etc, get the repairs completed in June rather than July.

While both of these strategies are tax effective, keep in mind the effect this might
have on your cashflow and future tax years.

6. Payroll Payments

To be entitled to a deduction for your employees guaranteed super contributions
the amount must be paid before 30 June 2009!

If you are considering the payment of bonuses to staff, pay these before 30 June
2009 to get a deduction for the amount in the current financial year.



Please note that this is only intended to be general advice and may not apply in
all circumstances. You should seek advice relevant to your specific
circumstances from your usual contact partner of UHY Haines Norton.  If you
have any questions, please do not hesitate to contact us.
 
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