Following are some excellent basic tax planning opportunities for taxpayers.

1. Make Super Contributions up to your allowable limit. Taxpayers under age 50 have a limit of $25,000 and for those aged over 50, the threshold is $50,000.
2. Take advantage of the super co-contribution scheme. The government contributes (up to $1,500 per year), if your total income for the financial year is less than $28,980. The super co-contribution progressively reduces for incomes more than this amount and phases out at $58,980. The self-employed may be eligible for super co-contributions.  The rules have been changed for 2010 to 2014. The co-contribution reduces to $1,000 rather than $1,500 and progressively increases back to $1,500 from 2014 onwards.
3. Time the sale of assets carefully. A little bit of planning may ensure that capital gains tax on assets are minimised, which can have a huge impact on your next tax bill. When looking to sell your business, the expanded capital gains tax concessions mean that there is greater scope to claim the concessions where eligible, but forward planning may significantly broaden the tax concessions available.
4. Start a transition to retirement strategy. This involves drawing an income stream from super and then salary sacrificing the same amount of your normal pay-back into super. Rather than pay your marginal tax rate on your salary, you pay just 15 per cent tax on the contributions. For those over 55, the money you withdraw from the income stream won't be taxed.
5. Salary sacrifice your super savings. Salary sacrificing means using some of your pre-tax earnings to pay for benefits such as extra super contributions. Some pre-tax earnings are used to pay for benefits like a laptop computer or car. Salary sacrificing could mean less tax is paid and benefits worth more than the after-tax cash received.
6. Apply for every tax offset and entitled rebate. Tax Offsets for private health insurance, franking credit and baby bonus will directly reduce the amount of tax you pay. They are not the same as deductions, which are excluded from your income when calculating your tax payable.
7. Take out life insurance through your super fund. Make this decision based on which fund is likely to give the best long-term return after deducting fees and charges. Another important consideration is quality and cost of the insurance that various funds provide. Taking life insurance cover through your super fund is usually very cost-effective, but it is important to ensure the cover suits your needs.
8. Consider taking out income protection. The government rebate is a good incentive for everyone to consider taking out income protection insurance. This incentive is provided by the government to encourage individuals to cover their income should they be unable to work due to sickness or injury.
9. Keep up to date with work-related expenses.  Look at the tax office guides. Efficient record-keeping will help avoid missing out on deductions that could be claimed. If your claims are less than $300, deductions won't have to be substantiated. If a room in your home is used for work purposes, a flat rate per hour provided by the ATO, can be used to calculate the deductible costs.
10. Consider your investments. Gearing, franking and imputation credits can be effective tax minimisation strategies, particularly if the investment can be purchased under a company or trust.

Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances.
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