What's new in 2007
The 2007 financial year is quickly coming to a close. It is now time for all taxpayers to review their affairs for the 2006/07 year. This could include deciding whether to self prepare tax returns, or engage the services of a professional tax adviser. Self-preparers must lodge by 31 October 2006. For taxpayers that lodge their returns through a registered tax agent, the lodgment date can be extended to as late as May 2006. Note that returns lodged late can be penalised.

Business & Self-Employed
Taxpayers carrying on a business should review their expenses to determine appropriate strategies to either Increase taxable incomes to absorb losses and other credits that may be lost or defer earning of income to a future year to gain a timing advantage (eg. A company may wish to delay distributing dividends). With significant tax cuts from 1 July 2007 for individuals, bringing forward deductible expenditure will provide a permanent advantage, as the value of some deductions will decrease in future years.

Super Co-contribution
From 1 July 2007, the super co-contribution is being extended so that Self-Employed persons will now be eligible. If you have total assessable income and reportable fringe benefits of less than $58,000 per year, you may be eligible for the co-contribution. The tax office will calculate your entitlement and pay it into your superannuation account based on the information provided in your tax return and contributions reported for the year by your super fund or retirement savings account provider. The maximum contribution from the tax office is $1,500. Contributions must be received by your superannuation fund prior to 30 June 2007 to be eligible for the Co-Contribution.

Budget Changes
From 1 July 2007, the Federal Budget introduces several changes to tax rates & thresholds, superannuation, broadening of small business capital gains concessions and family assistance levels. Employees should review the effectiveness of any pre-existing salary sacrifice arrangements as a result of the tax cuts that apply form 1 July 2007. There are also significant changes to Superannuation for 1 July 2007. Individuals and self-employed should discuss their situation both before and after 30 June 2007 to gain maximum benefits that super now has to offer.