Tips for the financial year's end

Tips for the financial year’s end

With just weeks to go until the end of the financial year, it’s time to make sure your finances area as tax effective as possible.

Whether it’s your super, your savings or your salary, there are many actions you can take to improve your overall tax position.

Superannuation strategies

Now is the time to make sure that you contribute as much as possible to your superannuation without breaching the contribution cap. Current contribution caps mean that planning ahead over the longer term is the best way to maximise the benefits of superannuation.

Concessional (before tax) contributions

  • Check superannuation contributions for the year to date to ensure that caps are not exceeded.
  • Consider modifying existing salary sacrifice arrangements if an excess contribution may occur.

Concessional Contributions Cap

2013/14

2014/15

Under 49

$25,000

$30,000

Age 49 to 59

$25,000

$35,000

Age 60+

$35,000

$35,000

Personal contributions by the self-employed

Clients who derive less than 10 per cent of their income from employment may claim a tax deduction for their superannuation contributions up to the concessional cap mentioned earlier. 

Co-contributions

Anyone earning less than $48,516 in 2013/14 should consider making a non-concessional contribution of $1,000 to make the most of the Government’s Superannuation Co-contribution scheme.

If you earn up to $33,516, the government will contribute 50 cents for every dollar up to a maximum $500.

Spouse Tax Offset

If you make a non-concessional contribution of up to $3,000 for a spouse who has an assessable income of less than $10,800, the Government will provide a rebate of 18% up to a maximum of $540. The rebate is phased out once the spouse’s income is greater than $13,800.

Savings strategies

For your non-superannuation investments, the end of the financial year offers an opportunity to offset any capital gains with capital losses.

Tax-effective strategies

One way to be tax effective is to consider the potential benefits of bringing forward any expenses that are tax deductible into the current financial year and push out any income into the next financial year.

Consider taxation and reporting matters such as:

  • Concessional contributions to reduce taxable income resulting from capital gains or other taxable income
  • Prepay deductible expenses
  • Defer tax invoices
  • Net medical expenses (still available in limited cases)
  • Private Health insurance
  • Maximise gifting for Centrelink purposes.

IMPORTANT DEPOSIT DATES AND CUT OFF TIMES (WST):

25th June – BPAY - 3.00pm*

27th June – Contributions via Direct Debit from application forms or Direct Debit request forms – 3.00pm

27th June – EFT deposits – 3.00pm*

* check with issuing bank for details on lead and cut off times as it may take several days for the payment to reach us. The payment must be received by 3.00pm Monday 30 June

The end of the financial year provides the perfect time to speak with your financial adviser, assess your financial situation and set yourself up for an even more prosperous year to come.