Home' News Bulletin : ADA News Bulletin June 2015 Contents 36
Caution the ATO has a Public Ruling relating to “wash sales”.
This refers to the instance whereby an asset is sold before year
end and a substantially identical asset is purchased immediately
afterwards, such that the owner continues to have an economic
exposure to the asset. The Ruling considers that the ATO can apply
Part IVA anti-avoidance provisions to cancel tax benefits and apply
Donations or gifts of $2 or more to approved organisations
and charities are tax deductible. Ensure you retain receipts for
maximisiNg allowaBle deduCtioNs
Expenses that are incurred before year end can reduce taxable
income. Consider up and coming liabilities and the value in
incurring them before year end.
If you have a rental property, consider whether you are
maximising claims for capital allowance and capital works
deduction on the property. We can assist you with seeking
a report from a suitably qualified specialist to maximise your
Pay income protection insurance premiums before year end. We
can assist you with obtaining quotes from insurance companies
that are appropriate for your circumstances.
In limited circumstances, an immediate deduction is available for
non-business prepaid expenditure, for example, interest on a loan
relating to a rental property or on other passive investments such
as a share portfolio.
motor VehiCle exPeNses
There are four methods which can be used to claim a deduction.
• The cents per km method
• The log book method (log book kept over 12 weeks and
updated every five years)
• One third of actual car expenses
• 12% of original value method
Contributions in respect to the quarter ending 30 June 2015
must be made before this date for a deduction to be available in
the 2015 year. For practices, consider maximising concessional
contributions for key individuals.
The concessional contributions cap from 1 July 2014 is $30,000
p.a. for all individuals, unless you were 49 years of age or older
on 30 June 2014. If you satisfy this age requirement, your
increased concessional contribution limit is $35,000 p.a. Therefore,
consider whether you are eligible to make an additional $5,000
concessional superannuation contribution prior to 30 June 2015.
Concessional contributions above these caps are assessed on an
individual basis, taking into account their marginal tax rate and
also incur an interest charge from the ATO.
The non-concessional contribution cap for 2014-15 is $180,000
p.a. or a total of $540,000 on a bring forward basis over a 3-year
period (provided that the bring forward rule wasn’t triggered in
either 2012-13 or 2013-14 year).
suPeraNNuatioN – iNCome
Individuals aged over 60 are generally not taxed on any payments
from a superannuation fund. Individuals aged between 55 and 60
will generally be taxed on a concessional basis.
suPeraNNuatioN – reBate
A rebate of up to $540 is available for superannuation
contributions made during the 2015 year for your spouse where
your spouse’s income is less than $10,800 p.a. This rebate reduces
for income amounts up to $13,800 p.a.
For a personal superannuation contribution to be deductible in
• You must be under 75
• The amount you earn as an employee must be less than 10% of
your combined assessable income, reportable fringe benefits and
reportable superannuation contributions
• Contributions must be made by 30 June 2015
• You must notify the trustee of your fund in writing of your
intention to claim a deduction
suPeraNNuatioN – goVerNmeNt Co-CoNtriButioNs
The maximum co-contribution amount that you can receive is
$500, based on an after-tax contribution of $1,000 (i.e. for every
$1 contribution made, the government contributes $0.50). This is
reduced by 3.33 cents for each $1 of income over $34,488 p.a.
up to $49,488 p.a. As there is also other qualifying criteria, you
should contact your accountant or financial advisor if you wish to
access these benefits in 2015.
traNsitioN to retiremeNt iNCome streams
If you are 55 years or older on 30 June 2015, you may be eligible
to commence a “Transition to Retirement” pension. Benefits may
• Receiving pension income while still working
• Ability to salary sacrifice to superannuation to access lower tax
• Concessional tax treatment within your super fund
For further information please contact Andrew Chen, Partner –
Professional Practice Advisory at Crowe Horwath. Phone: 02 9619 1626;
Mobile: 04 1066 0510; or email: email@example.com
Readers should not act only on the basis of material obtained in this
article because the contents are of a general nature and therefore do
not take into account each person’s individual circumstances and may
be liable to misinterpretation. Do not act upon any of the information
contained within this article without first obtaining specific advice from a
Crowe Horwath assumes no obligation to update this publication after it
has been issued. Whilst every effort has been made to ensure accuracy,
information contained may not be complete, may have changed or may
not be relevant to, or appropriate for your circumstances.
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