*SAMPLE ONLY*
YEAR END TAX PLANNING CHECKLIST
For year ended 30th June 20XX
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For Individual Tax Payers (Non Business)
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For SBE Business Tax Payer

For Non SBE Business Tax Payers
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Self Managed Super Funds

Trusts

Enduring Super Funds
INDIVIDUAL (NON BUSINESS) TAX PAYERS
There are two major avenues through which tax liability for 2012 year can be reduced. These are;
1
Deferring Income
- This means that delay the receipt of income until after the end of the financial year,
i.e. receiving income only after 30-6-2012.
- This concept is based on the fact that most taxpayers are assessed on cash basis,
which means income is taxed in the year in which it is actually received.
2
Accelerating Deductions
This involves bringing forward to the 2012 income year, future or proposed
expenditure / payments for claimable expenses, even though the due date falls beyond
30-6-2012.
TAX PLANNING TIPS
DEFERRING INCOME

Consider deferring the incomes from interest, dividends, rent, royalties or insurance
proceeds etc.

Work in Progress of professional practices is not taxable until at least a bill for that work
is raised. Hence consider delaying the issue of bills for Work in Progress.

Deviation of income in general might be deferred where possible.

In line with Arthur Murray case, taxpayers may be able to defer recognition of income
received before year end for services not yet performed.

Defer the disposal of Capital Asset to a subsequent year.

Defer the disposal of Capital Asset to ensure the asset has been held for the long term
(greater than 12 months), to take the benefit of 50% Discount scheme.
ACCELERATING DEDUCTIONS

Ensure that Superannuation contributions are paid by year end.

The outlay for deductible expenses may be brought forward.

Maximise prepayments subject to existing transitional rules.

Consider realising foreign exchange losses and deferring the realisation of gains.

Ensure that bonus obligations are incurred before year end.
Outdoor Workers
For people who work in an outdoor environment most of the time, they can claim items such as
sunscreen, hats and sunglasses. Please keep receipts for these items if you wish to claim them as a
deduction.
Note: If you are unsure whether your occupation falls within this category, please contact our office.
SBE BUSINESS TAX PAYERS
Note: SBE means small Business Entity. The followings are the distinctive features of SBE
taxpayer;
 An SBE taxpayer is taxed on his income on a receipts basis, and can claim
deductions on a ‘paid’ basis.
 A separate depreciation regime is applicable to him. He can claim immediate writeoff in the year of purchase for assets costing less than $1,000.
 All other business assets are depreciated as part of an asset pool. The pool rate is
30% for most depreciating assets, and 5% for depreciating assets that have an
effective life of 25 years or more.
 Where the difference between opening stock and closing stock does not exceed
$5,000, it does not have to be accounted for, although tax payer can choose to do
so.
Tests to become eligible for SBE tax payer
a. Must carry on a business; and
b. Must satisfy the $2m aggregated turnover test: turnover of the business, including
connected entities and affiliates, is less than $2 million GST exclusive.
TAX PLANNING TIPS
There are two major avenues of tax planning for SBE tax payers, these are;
i. Accelerating deductions, and
ii. Prepayments.
i.Accelarating Expenditure for SBE Taxpayers
1. Depreciable assets costing less than $1,000
Consider purchasing these items by 30 June 2012, as they are written off in the year of
purchase.
2. Depreciable assets costing more than $1,000
In the first year of their purchase, these assets are depreciated at half of the full rate of
depreciation. Therefore, consider purchasing these items by 30 June 2012.
3. Payment of Outstanding Bills
Consider paying bills already received, by 30 June 2012, to bring deduction into the 2012 income
year.
4. Consumables (e.g. Office Supplies, Stationery and Spare Parts)
Consider making a purchase of consumable items, to be consumed with in 3 months, by 30 June
2012.
5. Superannuation Contributions
Consider making actual payment of Superannuation Contribution by 30 June 2012.
Superannuation contributions are only deductible in the 2012 year to the extent they are
actually paid in the 2012 income year.
6. Client Gifts
If it is a common business practice to offer gifts to clients, suppliers etc, consider purchasing gifts
by 30 June 2012.
ii.Prepayments for SBE Taxpayers
A SBE taxpayer can only claim a deduction for prepaid expenditure where either of the following
conditions are met:
a. The 12 month prepayment rule is satisfied.
- the prepaid expenditure has an eligible service period not exceeding 12 months.
- the eligible service period ends in the income year after the one in which the expenditure was
incurred.
b. The expenditure qualifies as excluded expenditure.
- It is less than $ 1,000.
- It is required to be incurred by law.
- It is incurred under a contract of service.
Consider making the following payments by 30 June 2012.
1. Lease Payments. (e.g. non-luxury cars and office equipment).
2. Car Registration (deductible annual car registration fees).
3. Insurance (deductible insurance premiums).
4.
Interest. Consider organising with financier to prepay interest or to be charged interest in
advance.
5. Travelling Costs (e.g. airfares, accommodation and other costs) for business trip to be undertaken
after 30 June 2012.
6. Seminars and Conference Training Fees for those taking place after 30 June 2012.
7. Subscriptions (deductible annually).
NON SBE BUSINESS TAX PAYERS
There are three major avenues for non-SBE business taxpayers to reduce tax liability for the 2012
year. These are:
a. Accelerating Expenditure
This involves bringing forward to the 2012 income year, future or proposed expenditure
(e.g. repairs and depreciable items costing less than $100).
b. Prepayment Strategies
This involves paying (or incurring) an expense in advance, by 30-6-2012 (e.g. lease
payments, rent, interest, insurance premiums and subscriptions etc.).
c. Accrued Expenditure
This involves ensuring that so much of a deductible expense that has been incurred but
not yet paid for as at 30-6-2012, is brought to account as an allowable deduction in the
2012 income year (e.g. salary and wages, interest and rent etc.)
TAX PLANNING TIPS
1. Maximising Depreciation Deductions
 Consider purchasing depreciable assets costing $100 or less by 30 June 2012, as
100% of these items are written off in the year of purchase.
 Consider purchasing assets less than $1,000 by 30 June 2012. These assets are
allocated to low value pool, which are depreciated @ 18.75% in their first year
(irrespective of the date of purchase).
 Consider selling or scrapping an asset by 30 June 2012, where the asset’s sale
proceeds (if any) is less than its adjustable value, so that the loss can be claimed in
the 2012 income year.
2. Consumables (e.g. office supplies, stationery and spare parts)
Consider making a purchase of consumable items (to be consumed within 3 months) by 30
June 2012.
Please Note : Where items are purchased beyond the immediate requirements of the
business, the ATO may require deductions to be made on a usage basis. Immediate usage
would generally be within 3 months.
3. Superannuation Contributions
A tax deduction can be claimed for superannuation contributions made to a complying fund,
for the sole trader himself or for any employee, up to certain limits.
Please Note : Superannuation contributions are only deductible in the 2012 income year to
the extent they are actually paid to the fund by 30-6-2012, even though they may not be
required to be paid until 28 July 2012 for superannuation guarantee purposes.
4. Client Gifts
If it is common practice within a business to offer gifts to clients, suppliers, etc. (e.g. bottles
of wine), consider purchasing gifts by 30 June 2012.
5. Repairs to business assets
Consider incurring any planned repairs by 30 June 2012.