It is that time of year again; too late to do any in depth tax planning but the perfect time to ensure everything you planned for last July has happened. Below we have included a few things you might want to check in on before June 30 rolls around:
1. Topping up your superannuation
On July 1st 2018, super laws are changing to encourage empty nesters to downsize. Those over 65 who meet the eligibility requirements will be able to contribute up to $300,000 from the sale of their primary residence towards their super, without that money counting towards their contribution caps. The great news is both members of a couple are eligible, meaning you could add up to $600,000 to your combined nest egg from the sale of one home.
Even if you’re not considering downsizing there are still plenty of opportunities to make an after-tax contribution towards your super, or to take advantage of government contributions for low-to-middle-income earners. For example, if you have earned less than $36,813 during the 2017-2018 financial year then you may be entitled to a government co-contribution for any after-tax contribution you make.
Remember the non-concessional cap for super contributions is $100,000 and the concessional cap is $25,000.
2.Prepaying interest on your margin loan
If you have a margin loan in place now could be the time to prepay the interest on your loan and claim the interest as a tax deduction.
Paying more interest on a margin loan now, rather than later, is also a good strategy for those who know they probably won’t earn as much next financial year
3.Donations of $2 or more are tax deductible
If you usually give to charity and haven’t yet now is the time to consider if this is something you would like to do. Making your donation to a registered charity before June 30 will ensure that you can claim the tax deduction in your 2017-18 tax return.
McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579.
This information is of a general nature only and does not take into account your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).