Deferral of Income

Delaying receipt of income until 1 July 2016 defers the tax liability on this income until the 2016 financial year.  This strategy will be particularly effective for individuals who have significant capital gains to declare in the 2015 tax year and expect their taxable income to be significantly less next year.  It is also effective for people who expect their income to drop in the 2016 financial year, possibly as a result of maternity leave or changing employment terms from full-time to part-time.

A simple strategy that will assist in achieving the above is by placing money into term deposits that mature after 30 June 2016. The interest received on such investments is not taxed until received at the end of the agreed period.