Individuals
- Reduction in top marginal tax rate: The top marginal tax rate for individuals will reduce to 47% from 49% from 1 July 2017. Therefore, you should consider whether:
- any tax deductible expenditure should be brought forward to FY 2016-17;
- it is possible to prepay expenses such as interest, whilst ensuring the prepayment period does not exceed 12 months; and
- bonuses and dividends from private companies are paid in FY2018 where possible.
- Maximise concessional super contributions in FY17: The maximum annual concessional superannuation contributions that can be made will reduce from 1 July 2017 to $25,000. This is down from the current levels of $30,000 for individuals aged less than 50 and $35,000 for individuals aged 50 and over.
- Maximise non-concessional super contributions in FY17: The maximum annual non-concessional superannuation contributions that can be made will reduce from 1 July 2017. This is your final opportunity to contribute $180,000 per annum (or $540,000 utilising the bring-forward strategy). From 1 July 2017 the maximum reduces to $100,000 (and $300,000 using the-bring forward strategy) but if your member balance is $1.6 million or more no further non-concessional contributions can be made.
- Work-related car expenses: Ensure your logbook is up-to-date if you use a private motor vehicle for work-related purposes to guarantee you can claim the highest deduction available. Taxpayers should note that two previously available methods of claiming motor vehicles deductions are no longer available, specifically the 12%-of-the-cost-of-the-car method and the one-third-of-actual-expenses method.