May 2013 Newsletter
There are many ways in which taxpayers can take advantage of tax planning initiatives to manage their taxable incomes.
Income received in advance of services to be provided will generally not be assessable until the services are provided.
Debtors should be reviewed prior to 30 June to identify and to write off any bad debts.
Taxpayers should review trust deeds to determine how trust income is defined. This may have an impact on the trustee’s tax planning.
Companies should ensure that all dividends paid to shareholders during the relevant franking period (generally the income year) are franked to the same extent to avoid breaching the benchmark rule.
Capital gains tax
A taxpayer may consider crystallising any unrealised capital gains and losses in order to improve their overall tax position for an income year.
The ATO has reminded taxpayers to consider the superannuation contributions caps and the timing of when contributions are made when planning their tax affairs, in order to avoid excess contributions tax.
For 2012–2013 and later income years, the dependent spouse tax offset will only be available to those born on or before 1 July 1952.
Fringe benefits tax
The living-away-from-home (LAFH) rules have been significantly overhauled. While the rules remain in the FBT regime, there is an increased requirement to ensure LAFH payments are properly tracked, categorised and substantiated.