2011-12-financial-year-tax-tips

• Defer income and accelerate deductions: The personal tax rates for low- and middle-income earners are going to drop for the 2012-13 tax year, which will enable these earners to save tax by either deferring assessable income or bringing forward deductions provided action is taken by 30 June 2012.

• Deferring the purchase of depreciating business assets: An eligible small business may consider deferring the purchase of assets (such as desks, computer equipment, and lawn mowers) until after June 30, when the immediate deduction for a depreciating asset increases from $1000 to $6500.

• Trusts: Trustees of discretionary trusts are now required to make and document trustee resolutions as to how the income of such trusts for the 2011–12 financial year is distributed among beneficiaries by 30 June 2012.

• Defer work car purchases until 1 July 2012: An eligible SBE may wish to defer acquiring a business vehicle (e.g. a ute) until after 30 June 2012 as the entity will be able to claim an immediate deduction for the first $5000 of the cost of such a vehicle if it started to use the vehicle or has it installed ready for use during the 2012-13 tax year.

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