Not Another End Of Financial Year Checklist!

For many, the looming End of Financial year triggers frantic concerns about whether everything that should have been done, has been done.  While every year is different, there are a number of items that are consistent across most years.  We have outlined some of them below:

Super Contributions

Super rules are constantly changing, as are contribution types and limits.  It is important to be across these, to ensure that you are maximising both your tax effectiveness and potential retirement savings.

Most contribution types have end of financial year deadlines, it’s important to have these done in time.

Super co-contributions, spouse contributions, personal concessional contributions, personal non-concessional contributions, first home super saver contributions, salary sacrifice contributions, downsizer contributions – so many contributions!  But I’d argue that amongst this lot, there is a type of contribution that would be of benefit to every Australian.  Please seek advice, and ensure you are aware of what is available to you!

Perhaps one to make specific mention of is personal concessional contributions.  Previously only available for those who were self-employed, these have been available to employees since 1 July 2017.  It means that after-tax contributions can be made towards your superannuation balance and are tax deductible.  This means that before June 30 you can make concessional contributions up to $25,000 towards your super and claim it as a tax deduction against your income, potentially saving you thousands in tax.  A word of warning – the $25,000 limit does include your employer’s Super Guarantee contributions and therefore again it may be beneficial to seek advice prior to making this contribution to ensure you aren’t penalised for going over the cap.

Income Stream Minimums

If you have a Self-Managed Super Fund and take regular pension payments, it is important that you ensure you have taken your minimum annual pension. This annual minimum that you are required to take changes with your age. It is vital to keep up with these rules if you have a SMSF or even if you wish to have more knowledge of the workings of a regular pension account.  In response to COVID-19, the government has made changes to minimum pensions, similar to what they did in the GFC 10 years ago.  Read about these changes here.

Review Your Capital Gains Position

Did you make a capital gain this year on the sale of an asset that may impact your tax position?  If yes, there may be actions you can take to reduce your tax liability.  Selling other assets carrying capital losses to offset is a logical one, as is making tax deductible super contributions as mentioned above.  Like most EOFY strategies, they can be complex and may require you seeking advice.

Centrelink/Aged Care

It is always helpful to check what assets and income Centrelink have on record for you.  It pays to keep these records updated.  Times of investment market turmoil like we are currently experiencing make this more important.  Is gifting to reduce assets part of your Centrelink/Aged Care fee strategy?  If so, EOFY is an important date to keep in mind.

EOFY can be a stressful time for some, but it doesn’t need to be.  Do what is necessary early and avoid feeling like you missed out or could have done more.  Whether it is a simple phone call, or teeing up a meeting with us, don’t hesitate to get in touch.

This website contains general advice which does not consider your particular circumstances. You should seek advice from Wakefield Partners who can consider if the general advice is right for you.