1. Review income and deductions
Review your income sources (employment income, rental income, investment income etc) and ensure that you include your income from all sources in your tax return.
Identify all eligible deductions that you are entitled to claim (such as work-related expenses, working from home expenses, rental property expenses, charitable donations etc). Your accountant or tax adviser can better assist you with this.
Ensure you have supporting documentation for all deductions.
2. Superannuation contributions
In consultation with your financial adviser, consider making pre-tax contributions to your super fund before 30/06/2023. This will help increase your retirement savings and potentially reduce your tax for the financial year.
When making pre-tax contributions, ensure you don’t breach the concessional contributions cap for the financial year. Your financial adviser can assist you with this.
3. Capital gains and losses
Evaluate your investment portfolio to see if there are any tax saving opportunities available, such as realising capital losses to offset capital gains and taking advantage of the 50% capital gains discount for assets held longer than 12 months.
4. Review small business concessions:
If you own a small business, review eligibility for various concessions, such as the 2023 instant asset write-off, simplified depreciation rules.
5. Prepay expenses
Consider prepaying deductible expenses such as insurance premiums, interest, and subscriptions before the end of the financial year to bring forward the tax deduction.
6. Employer/Employee obligations
If you are an employee, ensure that you are receiving the correct superannuation guarantee contribution rate (currently 10.5% per annum) from your employer.
If you are an employer, make sure employee superannuation guarantee (SG) contributions are paid by the deadline to avoid penalties.
Review any outstanding employee entitlements, such as leave balances and bonuses.
7. Take advantage of government initiatives
Familiarise yourself with any new government initiatives or tax changes that may impact your tax planning. These might include updates to income for family tax benefit, updates to child care subsidies, or other changes to eligibility criteria for specific deductions or rebates.
8. Seek professional advice
Consult a qualified tax adviser/accountant and a financial planner to review your financial situation, receive advice that is tailored to your situation, and ensure you maximise your tax benefits while remaining compliant with all tax and superannuation laws.
9. Lodge tax returns on time
Ensure you lodge your tax return by the deadline (usually October 31, 2023) or engage a registered tax agent for an extended lodgement date (May 15, 2024).
Note: This checklist is a general guide, and not all the items in the list will be relevant or appropriate to your situation. It is important that you consult a qualified tax adviser and financial adviser who can provide you with tailored advice based on your specific circumstances.