Ideas for End of Financial Year

At this time of the year we thought it might be worthwhile to send out a quick summary of some of the things you might wish to consider prior to 30th June- in case some last-minute planning can improve your financial position.

Please note these strategies and suggestions are general in nature only and cannot consider your personal circumstances- nor does it take into account proposals in the latest Federal Budget as they are not yet law.

Strategies for all investors

• Prepay tax-deductible interest or allowable expenses (check first with your tax adviser).

• Consider the timing (this or next financial year) of any sale of investment assets with capital gains. Your decision may depend upon any anticipated change to your marginal tax rate as well as immediate prospects for that asset. (This may be especially important given recent Budget proposals.)

• Review investments where a capital loss may be used to help offset any already realised capital gains. (Unused capital losses may be carried forward until used up or the tax payer passes away.)

• Review Private Health Insurance in terms of rebates and Medicare surcharge.

Strategies specific to working people

• Ensure the appropriate tax deduction is claimed for personally (or business) paid income protection insurance.

• Review any personally paid Life/TPD insurance to see whether it could be more tax-effectively paid (pre-tax) by your super fund. (You may wish to seek advice about how to best structure the payment of your insurances.)

• Review your Concessional (pre-tax) Super Contributions to ensure you have not breached your annual cap ($25,000 for all this financial year). All employer Super Guarantee contributions as well as any Salary Sacrifice counts towards this cap.

• Please note that from 1st July 2017, anyone under 65 (or under 75 if they meet the work test) can also elect to make a Personal Tax Deductible Super Contribution to maximise pre-tax Super contributions and reduce taxable income (including realised capital gains). (Again please seek advice on this strategy.)

• People earning less than $51,813 (excluding Employer Super Guarantee Payments but including Salary Sacrifice and other fringe benefits) can consider making a Personal Non-Concessional Super Contribution to help qualify for a Government Super Co-Contribution of up to $500.

• Consider making a Spouse Super Contribution if they earn under $37,000 (excluding Employer Super Guaranteed Payments but including Salary Sacrifice and other fringe benefits) to help qualify for a tax offset of up to $540.

• For SMSF investors, make sure your formal (written) Investment Strategy (including consideration for insurance cover) is up to date and reviewed regularly.

Please be aware that product providers (especially super funds) will be particularly busy towards the end of June and most have brought forward their cut-off dates for various types of transactions, such as contributions and transfers. Payments must be received by the fund (not just arranged by online transfer from the bank) before the respective cut-off date to be counted in the current financial year.

If you are at all worried you might not be making the most of your money, or have any questions about any of the above, please do not hesitate to get in touch with your local RI Advice adviser by calling us on 1300 380 880 or visiting our website at youradvicepartners.com.au.

RI Advice Group Pty Limited
ABN 23 001 774 125, AFSL 238429.

The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should seek personal advice from a qualified financial adviser. The information is current at time of writing but is subject to change.