Planning for Personal Taxation: New in 2009/2010
With the financial year-end rapidly approaching, now is the time to consider opportunities to
minimise your tax and/or help you to achieve
your financial goals.
Our team of accountants and financial planners
are up to date with the latest changes and are
here to create and preserve your wealth as well
as to ensure you are making the most of the tax
deductions and concessions available to you.
These may include some of the following:
Transition to Retirement Income Streams
If you are 55 or older, you may be eligible to
commence a “Transition to Retirement” pension.
Benefits can include:
Receiving pension income while still
Ability to salary sacrifice to
superannuation to access lower tax rates;
Concessional tax treatment within your super
Please contact your adviser or financial planner
to discuss the benefits available to you.
Changes to Income Tests
Since 1 July 2009, a number of changes relating
to income tests have taken effect, and will
impact on you this financial year. These changes
affect most government subsidies and payments,
Entrepreneurs' tax offset;
Family Tax Benefit (FTB);
Senior Australian tax offset;
Pensioner tax offset
With the reduction of personal income tax rates
for residents in 2010/11, there may be benefits
in delaying the receipt of taxable income until
after 1 July 2010.
Capital Gains Tax
Realised capital losses are able to be offset
against realised capital gains and reduce tax.
Review your portfolio and crystallise capital
losses before 30 June 2010. Caution - the ATO
has issued a ruling that relates to “wash
sales”. The ruling considers that they can apply
Part IVA anti-avoidance provisions to cancel
reductions and apply penalties.
Donations or gifts of $2 or more to approved
organisations and charities are tax deductible.
Contributions or donations to political parties
or politicians are no longer tax deductible.
Please ensure that you retain receipts for
Maximising Allowable Deductions
Expenses that are incurred before year end can
reduce taxable income. Consider up and coming
liabilities and the value in incurring them
before year end.
Medical Expenses Rebate
A 20% rebate is available for net medical
expenses in excess of $1,500 per annum.
Medicare Levy Surcharge
The thresholds for the imposition of the
Medicare levy surcharge (if not covered by
private hospital insurance) are as follows:
Singles (no dependants) - $73,000
Families - $146,000 (plus $1,500 for each
dependant child after the first)
Motor Vehicle Expenses
There are four methods which can be used to
claim a deduction. These are:
The cents per km method;
The log book method (log book kept over 12
weeks and updated every five years);
One third of actual car expenses; and
12% of original value method
Detailed records assist in maximising
deductions. Please contact us to discuss the
most appropriate option for you.
In limited circumstances an immediate deduction
is available for non-business prepaid
expenditure (i.e. interest on investments).
Please contact us to confirm deductibility.
To be effective as a strategy for you, the
benefits received must be taxed at a lower rate
under the Fringe Benefit Tax rules, than your
salary. Due to the varying calculations under
FBT rules, we are happy to discuss whether you
will be better off under a salary sacrifice
Salary Sacrifice Bonus into Superannuation
You may be able to optimise your tax position by
salary sacrificing any end of year bonus into
super. There are certain important
considerations that need to be addressed in this
Superannuation - Income
Individuals aged 60 or over will not be taxed on
any payments from a superannuation fund.
Individuals aged between 55 and 60, will be
Superannuation - Rebate
A rebate of up to $540 is available for
superannuation contributions made during the
2010 year for the spouse of a taxpayer where the
spouse’s income is less than $10,800 (this
rebate is reduced for income amounts up to
Superannuation - Government Co-Contribution
The maximum co-contribution amount that you can
receive is $1,000. This is reduced by 3.33 cents
for each $1 of income over $31,920 up to
You will generally be eligible for the
* The definition of income for
the 2009/10 has been extended. If you intend to
take advantage of this concession, please
discuss this with us to ensure you meet all of