Bring forward Deductions
» Work-related expenses;
» Professional memberships;
» Donations to deductible gift recipients;
» Income protection insurance.
Rental Property
» Ensure all payments are made before year-end and that you retain records of all income and expenses relating to the property during the 2019 income year.
» If you have the available cash, consider prepaying interest for the 2020 income year on your rental property (or interest in relation to loans used to acquire other income-producing assets);
» Consider arranging for a quantity surveyor to prepare a Property Depreciation Report to allow you to claim the maximum amount of depreciation and building write-off deductions available, and allow you to claim the cost of obtaining the Property Depreciation Report itself. However, depreciation is no longer allowed on previously used plant and equipment bought on or after 9 May 2017 (i.e. if you bought a residential property after 9 May 2017, you can only claim the building write- off deduction and not the depreciation on plant and equipment unless you buy it directly).
Bring Forward/Defer Investment Income & Capital Gains
» Capital gains are determined on the date the relevant contract is entered into. If you are considering selling shares, business or property you may wish to bring forward or delay signing the contract until the new financial year, depending on whether you are seeking to crystallise a loss before year end or delay a capital gain.
Superannuation – Personal Deductions
» All individuals are now eligible to claim a tax deduction for personal superannuation contributions. The “10% test” has been scrapped from 1 July 2017. This is subject to super caps of $25,000 for concessional contributions. You should check existing contributions before making any additional contributions as excess contribution taxes apply where caps are breached.
» Concessional contributions are only deductible when paid before 30 June 2019.
Motor Vehicle Expenses
» If you use a motor vehicle for work-related purposes, it is important to monitor your work- related kms travelled and have your logbook up-to-date to ensure you can claim the highest deduction available.
Reference： Hall Chadwick Year-end Planning Key Issues