Newspaper article News Mail Bundaberg Qld.

Time to Talk Tax Breaks; Minimise Your Investment and Maximise Your Return

Newspaper article News Mail Bundaberg Qld.

Time to Talk Tax Breaks; Minimise Your Investment and Maximise Your Return

Article excerpt

PREPARING for tax time in 2009 will take some thought, with changes to consider following the federal budget.

It also is worth considering, in conjunction with your tax advisor, whether to jump in and gain some last-minute concessions before June 30.

Holiday homes, boats, co-contributions, micro businesses - all are areas subject to change (as outlined in our panel, right).

Not to mention, of course, the halving of the amount taxpayers can put into their superannuation without incurring penalty tax.

Negative gearing has long been a popular way of minimising tax, but in the current economic climate the low interest rates may mean you do not see the same benefits as 12 months ago.

However, negative gearing of real estate, share investments and unit trusts remain an option, as does pre-payment of interest.

Jamie Rach, of the Ulton group's Bundaberg office, says there is no "one size fits all" when it comes to taxation either as an individual or a business.

The goal is to have the right deductions in place to lower your taxable income.

"There are a range of ways to do that but each situation needs to be looked at on its merits," he said. "That's why I would recommend that when you see your accountant you also see your financial planner at the same time.

"You want to minimise your investment and maximise your return."

Louise Jealous-Bennett, of Bundaberg financial advisors C2J, says there are a range of strategic approaches when it comes to taxation.

As a piece of general advice, she says deductible items you will need next year can be bought now.

If you do so prior to June 30, you may be able to claim the deductions in this year's tax return.

Examples of suitable work-related items include tools for tradies, classroom consumables for teachers, non-slip shoes for hospitality workers, and seminars or conferences. …

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