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The concessional superannuation caps for 2011 are $25,000 for persons under age 50, and $50,000 for persons aged 50 and over. Do not go over these limits!
Note that employer super guarantee contributions are included in these caps. Where a contribution is made that exceeds these limits, the excess is taxed to the fund member's account at an effective rate of 46.5%.
In order to claim a tax deduction in the 2011 financial year, the contribution must be received by the super fund by 30 June 2011.
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To claim a tax deduction in the 2011 financial year, you need to ensure that your employee superannuation payments have CLEARED your business bank account by 30 June 2011.
For any last minute superannuation payments, we recommend that you arrange for a BANK CHEQUE made payable to your employee super fund prior to 30 June 2011. This ensures that your payment has actually cleared your bank account prior to 30 June, and will allow you to claim a full tax deduction in the 2011 financial year.
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Where possible, defer issuing further invoices and/or receive cash until after 30 June 2011.
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Purchase consumable items BEFORE 30 June 2011. These include stationery, printing, office and computer supplies.
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Make payments for repairs and maintenance (business, rental property, employment) PRIOR to 30 June 2011.
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If possible, arrange for the receipt of Investment Income (e.g. interest on Term Deposits) and Contract Date for the sale of Capital Gains assets to occur AFTER 30 June 2011. The Contract Date is the key date for working out when a sale has occurred, not the Settlement Date!
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If you own a rental property and haven’t already done so, arrange for the preparation of a “Depreciator” Report to allow you to claim the maximum amount of depreciation and building write-off deductions on your rental property.
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Business owners who have borrowed funds from their company must ensure that the appropriate principal and interest repayments are made by 30 June 2011.
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Review Trade Debtors listing to write off all Bad Debts BEFORE 30 June 2011. Prepare a minute of a Director’s meeting listing each Bad Debt as evidence that these amounts were actually written off prior to year end.
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For Small Business Concession taxpayers, you can make prepayments (up to 12 months) on expenses BEFORE 30 June 2011 (e.g. Rent, Interest on Loans) and obtain a full tax deduction in the 2011 financial year.
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If your marginal tax rate is more than 15%, salary sacrifice can be a great way to boost your superannuation and pay less tax. By putting pre-tax salary into super rather than having it taxed as normal income at your marginal rate you may save tax.
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Possibly your greatest asset is your ability to earn an income. Income protection insurance replaces up to 75% of your salary if you are unable to work due to sickness or an accident. The insurance premium is tax deductible.
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If your total income is less than $61,920, you may be eligible for a super co-contribution from the Federal Government. For each dollar in personal after-tax super contributions, the Government will contribute from $1 up to a maximum co-contribution of $1,000 for those earning less than $31,920. For the purposes of this test, income is taxable income plus reportable fringe benefits and salary sacrificed super contributions and personal deductible super contributions.
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