It’s that time of year again where a little time spent on planning your tax obligations will not only save you money but will also take away the stress of trying to find the money to pay your taxes.
It’s prudent to make an appointment with your Client Manager or Partner at your Chan & Naylor office to plan forward your tax obligations prior to the 30th June 2013 such as Super Contributions and taking advantage of other deductible expenses now such as bringing forward certain expenses and holding off on certain invoices. Even writing off obsolete stock or bad debts.
Please do this prior to 30th June because it’s too late after the 30th June.
Please also remember that any Super Contributions must be deposited into the Super bank account before 30th June to enable you to claim it as a tax deduction.
This is the time of year to ask your Chan & Naylor Client Manager to prepare your 1515 Certificates so you can reduce the amount of tax taken from your pay packet. The extra funds in your hands will help you fund the negative gearing on your investment property.
Please be aware that land tax obligations for certain States of Australia are assessed on the 30th June and other States are assessed on the 31st December.
Please go to the website of the Office of State Revenue for your respective State to find out what date applies to you.
TIP: Land Tax is based on self-assessment so if you do not voluntarily lodge a land tax return no one will chase you for it.
You could go on for many years without knowing there was land tax owed until one day you are audited or you want to sell the property and the buyer requests a land tax clearance and you are found out.
You will not only need to pay back all taxes but penalties and interest as well.
It’s best to lodge your land tax returns and even if you are below the land tax threshold and there are no land tax owed you will avoid the situation that due to increases in land value that one day you become liable and you were unaware.
Once you have lodged your land tax return the assessment notice comes out each year even if there is no land tax owed.
Ed Chan – Non Executive Director Chan & Naylor Accountants
Disclaimer: the above information is for general knowledge purposes only. Please take advice for your specific situation before investing in property. Every person’s personal situation is different and requires a different solution.