2016 Tax Planning 
Individuals & tax tips

• Make sure you action any super contributions prior to 30/6/16 - especially in light of pending Government legislation changes
• Consider prepayments to reduce tax. This could include interest on investment loans, insurance and other work related expenses
• Consider who's name certain assets are held in- especially when cash on hand. It may be tax beneficial to have in the lower income earners name (you must also consider other factors like asset protection)
• Alternative tax structures. With pending legislation changes to super it may suit your circumstances to consider a trust as an investment vehicle. This may assist with asset protection and tax minimisation for some clients depending on a number of factors
• Property. New legislation has now passed effective 1/7/16 where a clearance certificate will now be required from the ATO if property is sold in Australia in excess of $2M
• Review personal insurance policies. We are seeing many clients with various insurances including Income protection, Trauma, TPD & Life. Often what they have in place is completely inappropriate for their circumstances. There a number of ways to structure this in the most effective manner. We have an insurance expert if you would like to have your circumstances reviewed

• For those in pension phase, make sure you draw your minimum pension prior to the 30/6/16 (the funds must have cleared so do not leave to the last minute).  
• Electronic Service address (ESA). Almost all funds will require an ESA from the 1/7/16. If you have not already actioned attached is a link to assist - https://www.ato.gov.au/Super/Self-managed-super-funds/Setting-up/Get-an-electronic-service-address/ - we realise this was in a previous newsletter, though many clients are still unaware of the requirements
• In light of pending Government changes a recontribution strategy may be very useful to minimise tax long term.
• Contribution splitting. Again with recent budget announcements, if close to thresholds, this strategy will provide an effective way to reduce tax and may be appropriate to your circumstances

Business & employers

• Prepayments. If eligible, make sure you consider prepaying expenses prior to the 30/6/16 to get the tax deduction in the current year
• Pay the current qtr Super prior to the 30/6/16. Whilst not due until July, super needs to be paid prior to the end of the financial year to get the tax deduction this year . 
• Super stream. This begins on the 1/7/16. make sure you are ready. Attached is a link to assist if you have not yet considered your options - https://www.ato.gov.au/Super/Superstream/Employers/Employer-checklist--a-step-by-step-guide/
• Company tax rate for business with aggregated turnover with less than $2m is 28.5% for the 2016 tax year. There is also a new unicorporated "small business tax discount" for the 16 year. The discount will be 5% of the total tax payable - capped at $1000  
•  From 1/7/16 small business will be able to change the legal structure of their business without incurring any income tax. Only applies to active assets 
• Claim setup expense. Certain advice is now claimable in the year it is expensed. This applies to structure advice and includes accounting & legal fees in addition to other setup costs 
   

Please note the above is based on current legislation at the date of this email