Newsletter
May 2011 Newsletter
Maximising Deductions
Business taxpayers
• Debtors should be reviewed prior to 30 June to identify and to write off any bad debts.
• Review the asset register to identify any low-cost and/or low-value assets that may be pooled to access an accelerated rate of depreciation.
• Write off any depreciating assets which are no longer being held for use because a deduction may be available.
• Review trading stock for obsolete stock for which a deduction is available.
• Employees’ superannuation contributions should be paid before 30 June to obtain a deduction and to avoid the Superannuation Guarantee Charge.
Non-business taxpayers
• Outgoings incurred for managed investment schemes may be deductible.
• A recent High Court decision held a taxpayer deriving Youth Allowance was allowed a deduction for various self-education expenses.
• Assets costing $300 or less may qualify for an immediate deduction subject to certain conditions.
• A deduction for personal superannuation contribution is available where the 10% rule is satisfied.