UPDATE : 2 July 2018

The competition has ended, congratulations to our two winners Ricky Wait & Fab Carelli! & thank you to everyone that participated.

At Integrity One we LOVE doing tax returns! But maybe you don’t feel the same way!

Here is your chance to have your 2017/2018 personal tax return completed FREE of charge!

To enter simply go to our Facebook page  like our competition post & leave a comment as to what you’d rather be doing instead of doing your tax return.

The winner will be the comment with the most likes at 9am 2 July 2018 !!!

But wait there’s more, everyone who votes for the winning post will go into a draw to have their 2017/2018 personal tax return completed for free as well!.

To increase your chances of winning comment & like as many posts as you want!

Be in it to win it!

In the recent Federal Budget the $20,000 immediate asset write-off has been extended for 12 months to 30 June 2019.

Therefore, if you were looking to get a new asset before the end of the year, you are not restricted by making sure it was “ready-for-use” before 30 June this year. This may include getting a new motor vehicle or machinery built by this date.

The $20,000 immediate asset write-off means that a small business can claim a complete deduction for assets costing less than $20,000. In the past, assets of this size need to be written off over a number of years as depreciation.

Also, another year of the $20,000 write-off may mean that your business pool can be written off from 1 July 2018. The entire balance of the pool can be deducted in an income year when the balance before the calculation of depreciation is less than $20,000.

If you are in this position at 1 July 2018, an additional $20,000 write-off may be available to your business.

If you would like to go through the matter with us further, please do not hesitate to contact us.

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrity@iplan.com.au

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser before making decisions using this information.

By making a personal super contribution and claiming the amount as a tax deduction, you may be able to pay less tax and invest more in super.

How does the strategy work?

If you make a personal super contribution, you may be able to claim the contribution as a tax deduction and reduce your assessable income. The contribution will generally be taxed in the fund at the concessional rate of up to 15%¹, instead of your marginal tax rate which could be up to 47%². Depending on your circumstances, this strategy could result in a tax saving of up to 32% and enable you to increase your super.

Note: From 1 July 2017, most people will be able to claim a tax deduction for personal super contributions, regardless of their employment status.

How do you claim the deduction?

To be eligible to claim the super contribution as a tax deduction, you need to submit a valid ‘Notice of Intent’ form. You will also need to receive an acknowledgement from the super fund before you complete your tax return, start a pension or withdraw or rollover money from the fund to which you made your personal contribution.

Other key considerations

• Personal deductible contributions count towards the ‘concessional contribution’ cap (which is $25,000 in the 2017/18 financial year) and tax penalties apply if you exceed the cap.
• You can’t access super until you meet a ‘condition of release’. For more information, please visit the ATO website at ato.gov.au.
• If you are an employee, another way you may be able to grow your super tax effectively is to make salary sacrifice contributions (see opposite page).
• From 1 July 2018, if certain eligibility criteria are met, you may be able to carry forward unused concessional cap amounts. This may enable you to make concessional contributions in excess of the annual cap in a future year.

Make sure you can utilise the deduction

It is generally not tax-effective to claim a tax deduction for an amount that reduces your assessable income below the threshold at which the 19% marginal tax rate is payable. This is because you would end up paying more tax on the super contribution than you would save from claiming the deduction.

Seek advice

Please give us a call and we will help you determine if you could benefit from these strategies.

Notes

1. Individuals with income above $250,000 in 2017/18 will pay an additional 15% tax on personal deductible and other concessional super contributions.

2. Includes Medicare levy

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser before making decisions using this information.

Contributing some of your pre-tax salary, wages or a bonus into super could help you to reduce your tax and invest more into super for your retirement.

How does the strategy work?

With this strategy, known as salary sacrifice, you need to arrange for your employer to contribute some of your pre‑tax salary, wages or bonus directly into your super fund.

The amount you contribute will generally be taxed at the concessional rate of 15%¹, not your marginal rate which could be up to 47%².

Depending on your circumstances, this strategy could reduce the tax you pay on your salary, wages or bonus by up to 32%.

Also, by paying less tax, you can make a larger after-tax investment for your retirement, as the case study on the opposite page illustrates.

What income can be salary sacrificed?

You can only sacrifice income that relates to future employment and entitlements that have not been accrued.

With salary and wages, the arrangement needs to be in place before you perform the work that entitles you to the salary or wages.

With a bonus, the arrangement needs to be made before the bonus entitlement is determined.

The arrangement, which should be documented and signed by you and your employer, should include details such as the amount to be sacrificed into super and the frequency of the contributions.

Other key considerations

• Salary sacrifice contributions count towards the ‘concessional contribution’ cap (which is $25,000 in the 2017/18 financial year) and tax penalties apply if you exceed the cap.
• You can’t access super until you meet a ‘condition of release’. For more information, please visit the ATO website at ato.gov.au
• Salary sacrificing may reduce other benefits such as leave loading, holiday pay and Superannuation Guarantee contributions.
• Another way you may be able to grow your super tax-effectively is to make personal deductible contributions (see opposite page).
• From 1 July 2018, if certain eligibility criteria are met, you may be able to carry forward unused concessional cap amounts. This may enable you to make concessional contributions in excess of the annual cap in a future year.

Seek advice

Please give us a call and we will help you determine if you could benefit from these strategies.

Notes

1 Individuals with income above $250,000 in 2017/18 will pay an additional 15% tax on personal deductible and other concessional super contributions.

2 Includes Medicare levy

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrity@iplan.com.au

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser before making decisions using this information.