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2015 Year End Tax Planning

Written by Weston, Woodley & Robertson on 15 June 2015

With the end of financial year drawing to a close, we understand you will be busy with matters to be attended to prior to 30 June and consideration should be made of year end tax planning. We set out in our article some useful year end tax planning tips that should be considered. 

Defer Income & Accelerate Deductions

  • Legitimately defer the receipt of income and bring forward tax deductible expenditure by looking at the timing of sales and expenditure.
  • Possible deferral of income by considering timing of contracts or when income is actually derived. Defer capital gains until the next financial year or crystallise capital losses prior to 30 June.
  • Bring forward tax deductible expenditure such as certain repairs & maintenance, prepayments of less than $1,000, committing to staff bonuses or director's fees.
  • Review fixed asset register for assets that should be scrapped before year end and check correct depreciation rate is being used for additions.

Trading Stock

  • Trading stock can be valued at the lower of cost, market value or replacement value at 30 June.
  • Consider any old, obsolete or damaged stock that should be scrapped prior to 30 June or written down to market value.
  • Conduct a stock take on 30 June 2015.

Small Business Simplified Depreciation Rules

  • An immediate deduction can be claimed by small businesses for depreciating assets costing up to $1,000 purchased and installed ready for use.
  • Depreciating assets costing more than $1,000 will be allocated to the general business pool which is depreciated at 15% in the first year and 30% in subsequent years.
  • The Federal Budget for 2015-16 announced a measure to increase the instant asset write off from $1,000 to $20,000 (effective from 12 May 2015 to 30 June 2017). The legislation has been introduced to Parliament and has yet to be passed. We will keep you informed on this matter. 

Business Records

  • Ensure your accounting software package allows you to print reports after year-end or print at 30 June.
  • Maintain records for capital gains tax and ensure record substantiation expenses (receipts) are kept.

Capital Gains Tax

  • Hold investments / assets for at least 12 months to access the 50% capital gains tax discount concessions for individuals and 331/3% concession for superannuation funds.
  • Beware of 'wash sale' arrangements when disposing and reacquiring capital gains tax assets (over short periods of time). The ATO has issued a ruling on the application of Part IVA of the Income Tax Assessment Act 1936 (anti avoidance legislation) to 'wash sale' arrangements. These may be considered a scheme to reduce income tax and may be subject to penalties.
  • To be entitled to franking credits, you must own shares for at least 45 days (90 days for preference shares) (applies to investors with $5,000 or more in franking credits).

Bad Debts

  • Review your trade debtors ledger for any bad debts and write off before 30 June. You must have declared it as income in a prior year tax return to claim a bad debt deduction. Other tests may apply.


  • Bring forward deductions by prepaying certain business or investment related expenses by 30 June. If you prepay interest, ensure that the financial institution also charges the interest to your loan account.


  • The Corporations Act requires companies to pass several requirements to declare dividends to shareholders. Dividends are not restricted to being paid out of profits (subject to the company's constitution).

Private Company Loans to Shareholders or their Associates and Certain Trust Loans – Division 7A

  • If private companies have made loans to shareholders, the loans need to be put under a written loan agreement or repaid prior to the actual lodgement or due date of the company's tax return.
  • Ensure minimum repayments have been made by 30 June for existing Div 7A loan agreements.

 Unpaid Present Entitlements

  • Unpaid present entitlements (UPEs) occur when a trust makes a beneficiary entitled to trust income, but has not physically paid it to the beneficiary and it is showing as a liability owing to the beneficiary on the trust's balance sheet.
  • The ATO requires a UPE to a corporate beneficiary be repaid by 30 June of the following year or covered by a Division 7A loan agreement by the lodgement date of the corporate beneficiary's income tax return for the year that the UPE relates to.  Please contact us if this affects you.

Discretionary Trust Distribution & Streaming

  • Trustees need to prepare minutes resolving the distribution of income to beneficiaries for the year ending 30 June 2015 by the earlier of 30 June 2015 or the date specified in the trust deed. Trustees should take the below points into consideration when making the resolution:
    • Children under 18 years old can only receive $416 tax free (if they have no other income).
    • The tax legislation enables trustees to stream net franked dividends and capital gains to specific beneficiaries (subject to the trust deed). The other income of the trust will be distributed to the beneficiaries on a proportionate basis. 
  • Advice should be sought when making trust distributions for the year ending 30 June 2015. Please contact our team for assistance. 

Franking Credits and Trusts

  • Franking credits can only be passed onto beneficiaries where trust income includes at least $1 of income.
  • Where a trust derives franked dividends and costs are incurred in deriving these franked dividends, these costs must be offset against that income if you are intending to stream this income to specific beneficiaries.  If the net franked income is negative, the franking credits cannot be streamed but will still be distributed to those beneficiaries who are entitled to the other income of the trust.

Motor Vehicle Claims

  • If the log book method is used to claim motor vehicle deductions, ensure that you retain a current log book (a log book can be used for 5 years for the same vehicle). A declaration can be made if a new car is purchased so that the log book for the original car is valid for the replacement car.  Conditions apply.
  • Record closing odometer readings at 30 June 2015.
  • Ensure all necessary documentation is maintained to support your claims.

Farm Management Deposits (FMD)

  • The FMD scheme allows primary producers with non-primary production income of less than $100,000 to claim a deduction for FMD's made before 30 June.
  • When the FMD is withdrawn the amount is included in assessable income in the repayment year.
  • Primary producers affected by natural disasters can access FMD's within 12 months of making the deposit and still retain tax concessional treatment (note eligibility criteria applies).

Superannuation Planning

  • Employers must make the superannuation contributions by the 28th day of the month after the end of the quarter.
  • From 1 July 2014, the Super Guarantee rate increased to 9.5%. According to the new laws the Super Guarantee rate will remain at 9.5% for 7 years and then increase by 0.5% each year until it reaches 12%. Employers will be required to contribute additional Superannuation Guarantee Contributions for their employees in accordance with the following rates:

Financial Year

Super Guarantee Percentage (%)

1 July 2015 – 30 June 2016


1 July 2016 – 30 June 2017


1 July 2017 – 30 June 2018


1 July 2018 – 30 June 2019


1 July 2019 – 30 June 2020


1 July 2020 – 30 June 2021


1 July 2021 – 30 June 2022


1 July 2022 – 30 June 2023


1 July 2023 – 30 June 2024


1 July 2024 – 30 June 2025


1 July 2025 – 30 June 2026 and onwards


  • In order to obtain an income tax deduction for superannuation contributions paid, the superannuation contribution must be received by the nominated superannuation fund on or prior to 30 June 2015.
  • The table below summaries concessional caps for the current and future financial years:




Concessional cap – for up to 48



Concessional cap – aged 49 to 58



Concessional cap – aged 59 +



  • The limit for non-concessional (undeducted) contributions is $180,000 for the 2014/15 and for the 2015/16 tax year. You may be able to bring forward two years of non-concessional contributions and contribute up to the cap $540,000 for the 2014/15 and 2015/16 tax year (please contact our office for more information).   
  • Individuals aged between 65 and 74 are required to pass the work test in order to make contributions.
  • To claim a deduction for personal concessional contributions, your employment income (including reportable fringe benefits and reportable superannuation contributions) must be less than 10% of your total income.
  • If you are still working and reached preservation age, you may be eligible to commence a non commutable transition to retirement income stream. If eligible, consider receiving a pension from your superannuation fund.
  • Income amounts that are derived by a superannuation fund from assets used to pay a pension are exempt from income tax. Minimum pension amounts must be paid from the fund to be eligible.
  • Consider the tax offset entitlement for contributions made in respect of a spouse.
  • Ensure that all minimum and maximum (if applicable) pension payments are made prior to 30 June 2015.

 Tax Savings on Superannuation Contributions

  • Salary sacrificed superannuation contributions are taxed in the super fund at a maximum rate of 15%-30%, rather than at marginal rates of tax (up to the concessional contributions cap).


  • If you are planning to make a donation to a charitable organisation, you should consider making it prior to 30 June to be able to claim a tax deduction in your 2014-15 tax return. Only donations made to deductible gift recipients can be claimed as a deduction. Please ensure that you maintain receipts to support your claims.

Please contact our team if you wish to discuss any matters you wish to address prior to 30 June 2015. 


The information presented is for general information only and does not constitute the provision of advice. The information provided herein should not be used as a substitute for consulting with our office on your individual circumstances. No responsibility is accepted for any person or entity acting upon the contents of this article.    

Phone: (02) 9264 9144 | | Suite 3, Level 1, 15 Blue Street, NORTH SYDNEY NSW 2060
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