Knight 2022 Tax Planning Guide – Individuals

Individual Tax Planning – 2022

Individuals / Investors / Trusts

  • Pay any super contributions intended for the 2022 year by 23 June (so they are cleared to the superfund account by Wednesday 30 June.You will need to subtract from the threshold any employer superannuation (including super guarantee) that would have been physically paid to your respective funds in the 2022 financial year when calculating the remaining concessional cap of $27,500.
  • You are able to claim a full deduction for personal super contributions you make to your superfund, and you do not need to do this through salary sacrifice, even if you receive employment income.
  • Make sure your motor vehicle log book or work-related travel diary is up to date to substantiate any work related expenses deductions. If you claim a tax deduction for work related motor vehicle expenses, you should note your odometer records at 30 June each year so that you can calculate the kilometres travelled. Maintaining a logbook of work-related use of your vehicle will usually maximise the tax deduction you can claim. If your current logbook is 5 years old you will need a new one for a continuous 12 week period.


Recent changes to legislation:
Tax

Resident Tax Rates for 2021-2022

Taxable Income Tax on this income
0 – $18,200 Nil
$18,201 – $45,000 19 cents for each $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5 cents for each $1 over $45, 000
$120,001 – $180,000 $29,467 plus 37 cents for each $1 over $120,000
$180,000 and over $51,667 plus 45 cents for each $1 over $180,000

In addition, low and middle-income earners will receive an additional benefit of up to $1,500 from the low and middle income tax offset.

  • Tax rates for 2023FY will remain the same as 2022FY
  • From 1 July 2024, there will be a new 30% tax bracket from $45,000 to $200,000
  • Home office deductions – Individuals have a choice to apply the normal fixed rate of $0.52 cents per hour or the increased rate of $0.80. The Government has extended the shortcut rate to 30 June 2022. The new rate was introduced initially for the period from 1 March to 30 June 2020. You may have a higher claim by using the old lower rate and the actual work-related costs of phone, internet etc.

 

We welcome your call to discuss tax planning for you individually as well as your business.