Southern Advisory Financial Planning Sydney
(02) 9524 6711
  • Home
  • About Us
    • Sean Thomas
    • Kade Anthony
  • Services
  • Insurance
    • Life Insurance
    • Income Protection Insurance
    • Trauma Insurance
  • Investment
  • Wealth Management
    • Superannuation
  • Blog
  • Contact Us

10 Tips for EOFY 2015

30/5/2015

0 Comments

 
Picture
The end of the financial year is just around the corner, so we’ve put together ten things to help you get your finances in order ahead of 30 June.

1. Review your portfolio

Tax time represents a great opportunity to review your portfolio and consider a strategic re-allocation of your investments. Consider your portfolio allocations – is your portfolio heavily over- or underweight in specific sectors or stocks? Are you continuing to carry stocks that have exceeded your price targets or continue to under-perform – this may be an opportune time to re-balance. If you have an SMSF, now is the time to ensure your fund is invested in line with your documented investment strategy.

2. Offset capital gains with capital losses 

Generally, if you have incurred capital losses on your investments, you can offset these capital losses against any capital gains you have made. You can also use losses you have carried forward from previous years. Just remember, income losses can only be offset against income; capital losses can only be offset against capital gains.

3. Consider the ideal timing of your asset sales

If you are thinking of selling a profitable asset this financial year, but are likely to earn a lower income in 2015-16, it may be worth postponing the sale until after 30 June; alternatively, if you expect an income windfall or higher salary from 1 July, it may be worth bringing the sale forward. As always, these decisions depend on your expectations for future asset prices, so don’t postpone a sale for tax purposes if you are expecting your investment to fall in value!

4. Make tax deductible super contributions

If you earn less than 10% of your income from eligible employment (eg you are self-employed or not employed), you are generally able to claim a tax deduction for personal contributions to superannuation. As always with super, you will need to be eligible to contribute to superannuation (which means you are under the age of 65, or under 75 and meeting the work test), and be comfortable having your contribution preserved in super until you meet a condition of release (eg retirement). If you claim a deduction for it, the contribution you make will be taxed at 15% in your super fund, so your tax saving will be the difference between your marginal rate and 15% - which could be up to 34%.

5. Get more from your salary or bonus

If you are expecting a pre 30 June bonus, you may be able to sacrifice your pre-tax salary or bonus into super rather than receive it as cash. As with the deductible contributions above, this could reduce tax on your salary or bonus by up to 34%, and will allow you to take advantage of the contribution caps that apply in this financial year. Once your money is invested in super, tax on earnings is capped at 15%, which may compare favourably to investments held in your own name.

6. Use super to manage Capital Gains Tax

If you make a capital gain on the sale of an asset this financial year and earn less than 10% of your income from eligible employment, you may be able to claim a tax deduction for a contribution to superannuation, which could reduce or offset your capital gain.

7. Pre-pay investment loan interest 

If you have (or are considering establishing) a geared investment portfolio, you can pre-pay 12 months’ interest on your investment loan and claim the cost as a tax deduction in the current financial year.  This can assist you to manage your cashflow more efficiently, and potentially reduce your income tax liability this financial year.

8. Get a super top up from the Government

If you earn less than $49,4881 pa, of which at least 10% is from employment or a business, make a personal after-tax super contribution, you could qualify for a Government co-contribution of up to $500. 

9. Boost your partner’s super and reduce your tax

If you have a spouse who earns less than $13,8001 pa, consider making an after-tax super contribution on their behalf, and you could receive a tax offset of up to $540. 

10. Pre-pay your income protection premiums 

If you are employed or self-employed, income protection insurance provides peace of mind about the security of your income in the event you are unable to work due to illness or injury. Premiums for this insurance are generally tax deductible; prepaying your annual premium prior to 30 June will allow you to claim a full year of cover in advance.

It pays to be tax smart. It really does.

No matter what your situation, age or income, a little bit of End of Financial Year planning can go a long way. It can help you:
  • boost your retirement savings;
  • maximise your Government entitlements; and
  • minimise your tax liabilities.
 
As always, preparing your portfolio for tax time should always occur in the context of a well-constructed strategy to create, grow or protect your wealth. 

Need some assistance? Contact Us and one of our Planners can sit down and look at what strategies best suit you.

Source: NAB
0 Comments



Leave a Reply.

    Author

    Sean Thomas - Financial planner 

    Archives

    December 2020
    June 2020
    March 2020
    January 2020
    September 2019
    July 2019
    April 2019
    March 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    April 2017
    March 2017
    February 2017
    January 2017
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    January 2016
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    March 2015
    February 2015
    January 2015
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    March 2014
    February 2014
    January 2014
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    February 2013
    January 2013
    September 2012
    August 2012
    July 2012
    June 2012

    Categories

    All
    Insurance
    Investment
    Superannuation

    RSS Feed

Powered by Create your own unique website with customizable templates.