9News: Time to get thinking about your taxes

Peter Overton: The end of the financial year is fast approaching, so now is a good time to work out those extra tax deductions and to understand the changes that will affect how much you pay.

The Nine Network’s finance editor, Ross Greenwood, has the details.

Ross Greenwood: For workers on typical wages – not much has changed.

The main thing coming, from July 1 2019, the Medicare levy will rise from 2 to 2.5 percent on all our pay.

Now for higher paid workers, above $180,000 a year, the good news is that the temporary deficit levy – 2 percent of your pay – will come off.

So this year, before June 30, if you can legitimately defer income – say through bonuses – then you’ll pay less tax.

But the big saving is for small business.

In the past, governments allowed businesses with turnover up to $2 million a year to buy assets for up to $20,000.

Then instantly claim a full tax deduction when they put their tax return in.

Now that scheme has been extended, and governments will now let companies with annual turnovers up to $10 million to take part.

Now, remember this limit is not $20,000 in total…it’s $20,000 per item.

Now, one last thing – if you own an investment property, a couple of things affect you.

In the past, if you bought a property with equipment –  say dishwashers or fridges-  you might have been able to  claim tax deductions by depreciating them.

Now you can only claim for things that you actually bought yourself.

Also if you own an investment property in two states, you might want to consider a quick trip to inspect it before June 30.

Because, from July 1 you can no longer claim on your tax any trips to visit investment properties, interstate or overseas,

You see, it all adds up.

Treasurer Scott Morrison: We do not want a recession

 

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