Tax effective planning is essential.
Tax effective planning is essential in today’s financial planning process.
At each stage of the process we must assess the taxation impact of any recommendations made. We believe that it is important to invest for the sake of investment and not just to save on taxation.
Tax effective strategies generally centre around salary packaging and superannuation. We can, however, research and discuss the use of tax effective products to help achieve your desired goals and objectives.
There are a range of effective tax planning initiatives leading up to the end of the financial year that you can implement. Here are some of them:
- Claim a rebate $750 for each of your primary aged children and $1500 for each of your secondary school children under the Education Allowance.
- Maximise your superannuation contribution if you can. You can make a contribution of up to $25,000 if you are under 50 and up to $50,000 if you are over 50. The maximum rate of tax will pay on your earnings in your super fund is 15%.
- Prepay interest on your investment property or share loans for the coming 12 months.
- Consider selling any investments that have lost money before 30 June, if you have made capital gains in the financial year. This way you can offset any gains from losses to help minimise your overall taxable income.
- Write off any bad debts before the end of the financial year.
- Make sure that any bonus obligations are incurred before the end of the financial year.
- To help minimise capital gains tax you can consider deferring a sale to the following inform year, delay a sale to ensure that the asset has been held for 12 months and utilise the CGT small business and retirement concessions.
- If you have to pay tax, using a tax agent can be a good way to delay the payment of tax. The ATO gives tax agents extensions to lodge your tax returns beyond October.
If you would like to discuss or implement these strategies, please give us a call and we can guide you through the processes.
Call us today on (02) 9266 2269, Ask a Question or Make an Appointment with one of our experienced financial advisers. Our First Meeting is Cost and Obligation Free.
