LDB’s hot tips for end of financial year 2017

We’re into the sprint to the end of financial year 2017 so there isn’t much time left to tidy up the finances, get ready for tax time, and make the most of some soon-to-diminish tax breaks.

Here’s a handy checklist of key things you should be addressing in June:

Superannuation

• If you haven’t already maxed out on your super contributions caps for this year, make any additional contributions before concessional and non-concessional caps reduce from July 1
• Review salary sacrifice arrangements for the new financial year to ensure you don’t exceed the reduced concessional cap of $25,000
• If you have a Transition to Retirement Pension, review it before rules change. Will it still be beneficial when the investment earnings lose their tax-exempt status?
• Use the bring-forward rule to contribute up to $540,000 to super before the end of June. After July 1, that amount drops to $300,000
• If your income is less than $51,021, make a non-concessional super contribution of at least $1,000 and get a co-contribution of up to $500 from the government
• Remember that from July 1, 2017 most workers will be able to claim a tax deduction for any personal super contributions they make within their concession cap.

Other tax deductions

• Pre-pay interest on margin loans or other geared investments and claim the deduction in this financial year
• Are there other deductible expenses you can pre-pay, such as annual income protection premiums?
• Make your gifts to registered charities if you plan on claiming the deduction in this financial year
• If you run a small business, remember you can claim an immediate tax write-off for purchases of up to $20,000.

Investments

• Review your share portfolio. Are there any shares you can sell at a loss to offset capital gains you’ve realised this year?
• Review your end of financial year statements. Many statements won’t turn up in your inbox or mailbox until well after July 1, but once you have received them it’s a great time to review your overall financial situation – superannuation, other investments and insurance
• Movements in investment markets may mean that your portfolio risk no longer matches your risk profile, so check if your portfolio needs rebalancing. Do it while you have the opportunity to decide if gains or losses should be taken this financial year or next.

Talk to the experts

With expertise across all aspects of financial management, including tax, superannuation and other investments, LDB is ideally placed to help you and your business make the most of the opportunities available before the end of financial year 2017. We can also help get set you up for next financial year.

To find out more, give us a call on (03) 9875 2900 or fill in the contact form below.