DEFERRING INCOME:

• Most taxpayers will not be assessed on interest, dividends or rent until it is received (unless otherwise paid or credited on their behalf). This creates an opportunity for deferral.
• In line with the Arthur Murray principle, taxpayers may be able to defer recognition of income received before year end for services not yet performed.
• Derivation of income in general might be deferred where possible.

ACCELERATING DEDUCTIONS:

• Ensure that superannuation contributions are paid by year end.
• Write off bad debts before year end.
• The outlay for deductible expenses may be bought forward.
• Consider scrapping stock and plant and equipment of nil value before year end.
• Value stock at a lower replacement price or market value where appropriate.
• Maximise prepayments subject to existing transitional rules.
• Consider the appropriateness of the low value pool for depreciation of plant and equipment.
• Consider realising foreign exchange losses and deferring the realisation of gains.
• Ensure that bonus obligations are incurred before year end.

CAPITAL GAINS TAX:

• Defer a disposal to a subsequent income year
• Defer a disposal to ensure the asset has been held for at least 12 months, to (potentially) benefit from the 50% discount
• Match gains and losses where possible to avoid carrying forward a capital loss
• Consider the availability of rollover relief for disposals to related parties
• Utilise the CGT small business and retirement concessions

OTHER ISSUES:

• Avoid paying rebateable dividends to a loss company
• Consider the impact of private company loan rules, and whether loans can be structured to comply with the provisions to avoid a deemed unfranked dividend and franking debit.
• Consider the effective lives of depreciable assets
• Consider whether a family trust election should be made because of losses or bad debts in trusts or companies owned by trusts
• Do the alienation of personal services income rules apply? Is a personal services business determination required, or can the rules be avoided through careful planning?
• Consider farm management deposits (FMDs). Given the generally low incomes of many farmers due to dry conditions, many may in fact be drawing down against existing deposit.Remember, these are deferrals not permanent tax savings.
• Consider tax effective related investments such as: