Talking Cents

Tips from your business accountant before the end of the financial year

As yet another financial year draws to a close it's time to look at strategies and decisions that can have serious impacts on your business. As your tax accountant in Surry Hills, my blog will be dedicating the next five weeks to sharing some useful tax tips and other steps small business owners can take to either minimise negative impacts or maximise opportunities prior to 30 June.

One such issue is the means testing of the Private Health Insurance Rebate Scheme that kicks in on 1 July. For those who aren't aware, the 30% rebate you currently receive on your health insurance is going to be means tested based on your family's taxable income. If your family income exceeds $168,000.00 you will receive less of a rebate. If your family income exceeds $260,000.00 you will receive no rebate at all. The practical application here is that you need to advise your health fund to reduce your rebate if these income categories apply to you. If not, the tax office will work out your entitlement upon lodging your tax return, adjust your tax assessment accordingly and request payment for any over claimed rebates.

There is some good news here that alert taxpayers can take advantage of for this year only if you act now.
By prepaying your annual health insurance premium before 30 June you are still guaranteeing your entitlement to the 30% rebate, regardless of your income in 2013. That simple step can result in quite a large saving to the family budget!

If you think that this issue applies to your personal situation, then I urge you to contact your small business accountant to get advice specific to your situation before its too late.