Businesses may be able to claim a tax deduction of 50%, 30% or 10% of the cost of an eligible new tangible depreciating asset, acquired and first used or installed ready for use between specified periods (see below).

New expenditure on existing assets may also qualify.

The tax break is in addition to the deduction for the decline in value a business is entitled to claim for the asset.

Minimum expenditure thresholds apply.

The amount of the deduction available depends on the annual turnover of the business, when the asset is acquired and when it is first used or installed ready for use.

Businesses with an annual turnover for less than $2 million may be eligible for 50% deduction for investment of $1,000 or more in an eligible asset (small business).

All other businesses will be able to access a 30% deduction for investments if $10,000 or more in eligible assets for assets acquired by 30 June 2009 reducing to 10% deduction for eligible assets acquired after 30 June 2009.

The table below shows the percentage deductions available for the respective time periods:

The education tax refund (ETR) is a new tax offset that helps eligible families and independent students meet the cost of primary and secondary school education.

KEY POINTS

Your clients claim the ETR if, in the 2008-2009 income year, they:

Ø      Had a child at primary or secondary school

Ø      Received family tax benefit (FTB) Part A for the child or a payment was made for that child which stopped them from receiving FTB Part A for the child

Ø      Had eligible education expenses, (does not include school fees or uniform costs)

Independent students can also claim.

Clients can claim 50% of eligible expenses up to:

Ø      $750 for each eligible child in primary school – that is, a refund of up to $375

Ø      $1500 for each eligible child in secondary school or for an independent student – that is, a refund of up to $750.

80% of investors overpay their income tax!

There are millions of dollars in unclaimed tax deductions on investment properties every year, due to accounting and self assessment methods lacking the detail to take advantage of all eligible property tax deductions.

Make sure you are not one of the property investors missing out on eligible property tax deductions by getting a Deppro Property Depreciation Tax Report.

The Deppro Property Depreciation Tax Report guarantees you claim 100% of your eligible tax deductions. This can mean thousands of dollars in extra income.

Deppro’s Property Depreciation Tax Report provides a 40 year schedule for Capital Works Allowance (Building Write-off) and Depreciable Assets (Plant & Equipment Allowance).

The report itemises all depreciable assets and applies the ATO’s effective life and hence, depreciation rates and is fully tax deductible for a cost of approximately $600.

Deppro: (Ph) 1300 999 489 or visit www.depro.com

These concessions can eliminate or reduce any capital gain made on the sale of a business. However strict conditions apply and if your business structure is not flexible enough to benefit from these concessions you may miss out. The recent changes have made the concessions available to a greater range of taxpayers than before.

WHAT YOU SHOULD DO

Consider a simulated sale and capital gain outcome. If necessary consider possible changes to your business structure. It will be too late after you have sold!

Adequate insurance is a must both for people in business or individuals. Will it cover your living expenses? Mortgage? You should consider the necessity for income protection insurance, trauma insurance and life insurance.

WHAT YOU SHOULD DO

Consider whether your current insurance is adequate for your needs. You may find there are cheaper options especially through super. Arrange a review as soon as possible.

All too often taxpayers make additional income through sales of rental properties, shares and other taxable events. Sometimes we just have a very good year from a business point of view. Or as wage earners we have few deductions and therefore small refunds. Strategies do exist for tax reduction before year end.

WHAT YOU SHOULD DO

If you believe you have events that will increase your tax payable consider planning before 30 June.

New strategies exist addressing the changes to superannuation. It is vital from a retirement planning point of view to be abreast of these issues.

Opportunities also exist regarding use of the government co-contribution and spouse contributions.

You should also consider if a self managed superannuation fund would be adequate for your needs. If you already have a self managed fund is your trust deed up to date with the changes?

WHAT YOU SHOULD DO

Review your super and insurance within super as soon as possible.