June 30 Tax Planning
The end of financial year is fast approaching so now is a good time to make smart decisions for your financial future. Here are a few examples to get you thinking …
- Maximise your contributions – if you have surplus income and have not already maximised the concessional contributions cap you may want to salary sacrifice to make the most of your contributions. Make sure you check what the cap is for your particular age group. This will reduce your taxable income and increase your retirement savings.
- Get a super top up from the Government – if you earn less than $49,488 from employment income you may qualify for a government contribution of up to $500 if you make a personal after tax super contribution of up to $1,000. This will help you to increase your retirement savings.
- Boost your partner’s super and reduce your tax – if you have a spouse who earns less than $13,800pa you could make an after tax super contribution on their behalf. You receive a tax offset of up to $540 and increase your spouse’s retirement savings.
- Pay less tax on investment earnings – if you have investments in your own name it may be worthwhile to cash them out and use the money to make a personal after-tax super contribution. You could reduce tax on investment earnings by up to 32% and increase your retirement savings.
- Make insurance more affordable – you can purchase life and total and permanent disability insurance inside of super. By doing this you can benefit from tax concessions and make the premiums more affordable.
- Pre-pay income protection premiums – if you hold your income protection insurance outside of super and are an employee or self-employed, you can pre-pay 12 months premiums to bring forward your tax deduction to pay less income tax in this financial year.
- Pre-pay your investment loan interest – you could pre-pay 12 months interest on your investment loan. This will bring forward your tax deduction so you pay less income tax in this financial year.
- Plan carefully – if you are looking at buying or selling assets you should consider the tax implications whether it be gains or losses and plan carefully to minimise the impact.
- Make better use of your tax refund – if you receive a tax refund you may want to firstly pay off non-deductible debts, look at debt recycling or boosting your superannuation. This will enable you to save on interest costs and invest your refund tax effectively.
End of financial year planning is important – it will not only help you in the short term, it will significantly benefit you in the long term. Smart planning can help you to:
- Boost your retirement savings,
- Maximise your government entitlements, and
- Minimise your tax liabilities.
Should you wish to sit down with a financial planner and look at what the best strategies are for you, please do not hesitate to contact Rebecca Fergusson or Charles Badenach on 6173 0070 or firstname.lastname@example.org.
The information in this document reflects our understanding of existing legislation, proposed legislation and rulings as at the date of issue. Whilst it is believed the information is accurate and reliable, this is not guaranteed in any way. Please note the advice in this article is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information