• TFC Financial

Get Ready for June 30 Now!

When it comes to getting the most (money) from your annual tax return, there is usually a lot to think about, so we’ve identified a few options that could open the door to some opportunities to save on tax.

The key here is to plan ahead.

Deductions — Lower Your Tax Liability


=> Pay now for some of next year's expenses


If you have some spare cash available, paying for certain expenses before June 30 could mean you get your tax break back from the ATO earlier. Expenses paid in July could leave you waiting more than 12 months for the return. A popular expense in this category is prepaying interest on an investment loan, but be careful because not all expenses qualify for a tax deduction in advance.


This year the ATO is focusing on work-related expenses. If you are planning to claim expenses for things like a home office, mobile phone, tools and equipment, etc, make sure you claim only eligible expenses and have the paperwork to substantiate them.


=> Cash back for insuring your income


You can claim the premiums you have paid for your income protection insurance as a tax deduction. Note that you can only claim the portion of the premium that covers you for loss of income, not for any benefits of a capital nature. Premiums for other personal insurance cover such as life, critical care or trauma cannot be claimed. You also can’t claim deductions for premiums that are paid from your superannuation contributions if your policy is held in your fund.


Super Contributions — Don't Waste The Limits


June 30 is not just about deductions for expenses. It's also a good time to review your superannuation contributions to date and take advantage of the annual caps.


=> Salary sacrifice or concessional contributions


The annual limit for these types of tax-deductible contributions is $25,000 per annum, regardless of age. If you're an employee, this limit covers both employer super guarantee and salary sacrifice contributions.


How much has your fund received in contributions so far this year? Do you need to review and adjust your current arrangements?


=> After-tax contributions


Anyone under 65 (whether working or retired) can contribute $100,000 each year to super as after-tax or non-concessional contributions. You can also contribute $300,000 in a single year by bringing forward the limit for the following two years. But – when it comes to super there’s usually a ‘but’ – check your total super balance to ensure any extra contributions do not exceed the general balance transfer cap of $1.6 million for 2017/18.


And one final point on super contributions – the total contributed is based on how much is received by your fund, not when you sent it to the fund. Another reason why planning ahead is crucial.


These are just a few ways to manage how your money is taxed. Depending on your circumstances, other options may be available. Your licensed TFC Financial adviser can work with you to help you achieve what is best for you this financial year. But please don’t leave it too late get in touch if you have any questions.

Get Ready For June 30


Toowoomba Financial Centre Pty Ltd ABN 88073088070, trading as TFC Financial is a corporate authorised representative of Charter Financial Planning Limited ABN 35 002 976 294 Australian Financial Services Licensee License number 234665. This article contains general advice only. You need to consider with your financial planner, your investment objectives, financial situation and your particular needs prior to making any strategy or product decision.

CONTACT US

Phone:  (07) 4639 1399

Fax:       (07) 4639 6921 

Office:   Canberra Place 123 Margaret Street

              Toowoomba QLD 4350

              (Cnr Margaret & Hume Sts)

Postal:   PO Box 1591, Toowoomba QLD  4350

SIGN UP FOR FINANCIAL UPDATES FROM US

Toowoomba Financial Centre Pty Ltd ABN 88 073 088 070, trading as TFC Financial is a corporate authorised representative of Australian Financial Services Licensee 234665, Charter Financial Planning Limited ABN 35 002 976  This website contains general advice only. You need to consider with your financial planner, your investment objectives, financial situation and your particular needs prior to making any strategy or products decision.

Your privacy is important to us and Australian Financial Services Licensee, which is part of AMP. You may request access to your personal information at any time by calling us on (07) 4639 1399 or contacting AMP on 1300 157 173.

Information collected will be subject to AMP's Privacy Policy. You can also contact us or AMP if you do not wish to receive information about products, services or offers available from us or AMP from time to time.