If you earn less than $45,400 a year and make an after-tax contribution to your super in 2024-25, the government may add up to $500 extra to your super. This is called the government’s super co-contribution.
Contribution for your spouse – free $540 back in your tax refund
Spouse superannuation contributions can now be made for spouses earning up to $40,000 per year. If your spouse has earnings below $37,000 you can claim the maximum tax offset of $540 when you contribute $3,000 to his/her super.
Spouse super contribution splitting
Contribution splitting is a financial strategy that allows you to distribute certain before-tax (concessional) contributions to your spouse’s super account. This approach is designed to even out super balances between partners and aim for more balanced retirement savings and tax benefits.
Prepayments
Pay expenses in advance before 30 June this year that wholly or partly relate to next year e.g. licences, phone, memberships. Buy your tools that you need before 30 June.
Instant asset write off
Think about buying a work vehicle. Fully tax deductible if in your possession and ready for use by 30 June. The vehicle needs to cost less than $20,000 to write it off on tax immediately.
Motor vehicle claim
You need to keep a logbook for 12 consecutive weeks to claim under the logbook method. You should consider keeping a digital logbook. You can claim up to 5000 kilometres business without full substantiation. You still need to be able to explain your work use and have diary notes to substantiate the claim if requested. The claim rate per kilometre is 85 cents for the 2024/2025 tax year.
Working from home
Don’t forget to claim your working from home expenses. You can claim on the actual expenses method if you keep all receipts. Otherwise, you can claim the fixed rate method of 67 cents per hour. This fixed rate method covers electricity, gas, mobile and phone when used at home, internet, stationery and computer consumables.
Declare your crypto trading
Be careful of crypto trading. The ATO is watching when you sell your asset. Procure a financial statement for your accountant.
Sell poor performing assets
Check if you want to sell bad performing assets before 30 June. You can offset any losses against capital profits on shares or property.
Superannuation contributions
Make additional contributions to your superannuation fund through ‘salary sacrificing’ or independently.
KEEP YOUR WRITTEN EVIDENCE
Make sure you have written evidence such as receipts, invoices and bank or credit card statements, for everything you intend to claim.
Operate your business separate from your personal assets
You should look at your trading structure if you operate a small business.
Try to not give personal guarantees.
Be aware to whom you give personal guarantees.
Set up your own super fund (SMSF)
Consider setting up your own Self-Managed Superannuation Fund (SMSF) to buy property. Assets within a super fund including SMSFs are protected from creditors.
At retirement, there is no capital gains tax payable on the sale of properties within the SMSF where the SMSF is in pension phase. In any case the tax is only 10 per cent on the capital gain if sold before retirement provided it is held for 12 months.