Save Thousands in Tax Before End of Financial Year

Save Thousands in Tax Before End of Financial Year

 It’s that time of year again! End of Financial Year is either a fantastic or dreadful time of the year depending on your income, spending, and knowledge. Make sure you’re the one with the generous tax return this year!

We’ve developed our top tips designed to minimise the tax you’re required to pay and boost your savings. Enjoy.

  1. Pay and Delay

Look for ways to pay tax-deductible expenses now and delay income until July where your taxable income is likely to be higher this year than next.

Consider pre-paying interest on your loans, subscriptions, conferences, and membership fees for professional associations.

If you are able to and it’s beneficial to you, try to defer income until after June 30 to avoid paying tax this financial year. This could be done by reviewing term deposit maturity dates or legitimately deferring income by holding off issuing invoices until July 1.

  1. Donate

Thinking of making a donation? You may be able to receive a tax deduction for gifts and receive that deduction this financial year.

  1. Property Repairs

If you have an investment property, consider doing minor repairs and maintenance prior to the end of financial year.

  1. Salary Sacrifice

Why not sacrifice your last pay or bonus and save tax? An individual on a salary of $90,000 per year will save tax of $1850 by sacrificing $5000 into super. Do your figures to ensure it is beneficial for your own circumstances.

  1. Top up your super

If you have surplus funds in your own name, consider making additional contributions into your superannuation fund. If you haven’t already exceeded the Lifetime Cap, you may consider topping up your super – but be wary.

  1. Reduce capital gains

Your investments will move around in value and you may be sitting on some paper losses from shares or other investments. This could be a good time to sell some of your poor performers to offset against capital gains made on the sale of other investments over the past 12 months.

June 30 falls on a Friday this year, so ideally any strategies or contributions should be finalised by Monday, June 27 to be included in this financial year.

Article based on smh finance advice.

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