The Most Effective Ways to Minimise Your Tax Bill

With the end of the financial year approaching, now is the ideal time to meet and discuss the suitable actions you can take before 30 June 2024, to reduce your tax and grow your wealth.

Having a well thought out tax strategy is an important way to minimise your tax bill. We encourage our clients to do this well before 30 June to allow enough time to implement the relevant tax saving strategies. The sooner we start planning the better! So, If you haven’t scheduled a tax planning meeting with your advisor yet, please contact your advisor today!

What tax minimisation strategies should you consider for 2024?

To help prepare clients for tax time, our Morrows advisors have developed two 2024 Tax Minimisation guides. These guides outline over 30 various strategies we can consider to help reduce your personal and business tax bill this financial year.  Below is a snapshot of what you can expect from the guides. Complete the form below to download a comprehensive summary of the tax minimisation strategies we recommend for individuals and business owners.

The top 3 key tax saving strategies for business owners in 2024 are:

• Invest in Energy Efficiency: Businesses with an annual turnover of less than $50 million may deduct an additional 20% on spending that supports electrification and more efficient use of energy. Eligible assets or upgrades must be first used or installed ready for use between 1 July 2023 and 30 June 2024.Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum tax deduction being $20,000 per business. This measure is not yet law; however, if you are planning to upgrade any energy efficient assets, this may be an added incentive.
• Skills and Training Boost: Until June 30, 2024, Small Businesses with an aggregated annual turnover of less than $50 million can claim an additional 20% tax deduction for external training courses delivered to employees by registered training providers.
• Defer Investment Income and Capital Gains: If possible, arrange for the receipt of Investment Income (e.g. interest on Term Deposits) and the Contract Date for the sale of Capital Gains assets, to occur AFTER 30 June 2024. The Contract Date is generally the key date for working out when a sale occurred, not the Settlement Date!

Key Tax Saving Strategies for Individuals in 2024 include:

• Upgrade to an Electric Vehicle:  Individuals opting for novated leases on electric vehicles can enjoy significant tax benefits. This presents a unique opportunity to upgrade your vehicle while enjoying tax benefits. Contact your advisor to discuss whether this is a viable option for you.
• Salary Sacrifice to Super or other FBT Exempt Items: If your annual income is $45,000 or more, salary sacrifice can be a great way to boost your superannuation and pay less tax. By putting pre-tax salary into super rather than having it taxed as normal income at your marginal rate. This can be especially beneficial for employees nearing their retirement age. If you prefer not to top up your super, you can also salary sacrifice on the purchase of FBT exempt assets such as mobile phones and laptops.
• Maximising voluntary superannuation contributions: The tax-deductible super contribution limit (or “cap”) is $27,500 for all individuals under age 75. Individuals need to pass a work test if over age 67. To save tax, consider making the maximum tax-deductible super contribution this year before 30 June 2023. The advantage of this strategy is that superannuation contributions are taxed at between 15% to 30% compared to typical personal income tax rates of between 34.5% and 47%.

Want to learn more Tax Minimisation Strategies?

Download our two Tax Minimisation Guides today. These comprehensive guides outline over 30 additional tax saving strategies to help reduce your personal or business tax bill this financial year. Fill in your details below, to gain access to these guides for free.