Time Flys: End of Year Tax Planning

It’s hard to believe that we’re already 75% of the way through the 2013 – 2014 financial year.  How is your financial strategy working this year? There are a number of ways that you can boost your financial bottom line and it may be that a consultation with your financial adviser is advisable before the end of the financial year. 

Are any of these relevant to you this year?

Salary sacrifice to superannuation

If your marginal tax rate is more than 15%, Salary sacrifice is a tax efficient way to boost your superannuation.  

Contribute to Superannuation

Have you taken full advantage of the Personal Concessions available before penalty taxes apply?

Contribute to your Spouse’s Superannuation

You can claim a tax off-set on superannuation contributions made on behalf of a low-income or non-working spouse.

Offset capital gains

Tax is normally payable on any capital gains. If you have any non-performing investments, it may be an appropriate time to realise any capital losses and off set them against any capital gains made. This will reduce the tax on capital gains. Unused capital losses can be carried forward to offset future capital gains.

Pre-pay interest expense

You might gain some benefit by pre-paying interest expenses on investment borrowings.

Protect your Income

Have you taken out insurance cover to protect your income in the event of illness or accident?  Such insurance premiums are tax deductible.

Take out Life Insurance within Superannuation

Have you got adequate Life Insurance cover? If such cover is held within your superannuation fund and you make either salary sacrifice or personal concessional contributions, you can effectively get a tax deduction on your premiums.

Qualify for a Government Co-Contribution

Maybe you qualify for a superannuation co-contribution from the Federal Government… find out by speaking with us.

Your situation is unique to you and financial advice needs to be tailored to your goals and situation. Why not call your Hunter Financial Planning and discuss your particular situation before June 30?

The advice is general in nature only and does not take into consideration your financial situation, goals or needs. Please seek advice prior to acting on this information.