Time to strategise – are you ready for the end of the financial year?
May and June are always busy months of the year in the finance profession given how much is going on for both individuals and businesses around the country.
Every year the annual budget is held on the second Tuesday of May and the financial year ends 30 June. Whether you have a financial adviser to help guide you through this time or are trying to manage things on your own, below are some things to think about this time of the year.
End of financial year 2015
The end of the financial year can be a great opportunity to take advantage of some strategies that may have been neglected throughout the year. Below are a few things you should be thinking about and discussing with your adviser:
- Spouse contribution – For couples where one spouse earns substantially more income than the other, this can be a great way to help accumulate retirement savings and reduce your ongoing tax bill.
- Government co-contribution – This has been available for many years now but the benefits have been gradually reduced over the years. That said, it is still a good way for low income earners to build superannuation savings.
- Income protection insurance – Income protection premiums are tax deductible, so paying them in June and then claiming them back through your tax return in July/August reduces the time lag getting your tax refund. If your cash flow permits, this can be a good strategy to pay those premiums annually in June.
- Superannuation contributions – There are very strict limits on the types of contributions you can make to superannuation and getting the timing right is critical here. With 30 June approaching, you should be discussing this with your financial adviser in case there are some strategies available to you around reducing tax and increasing your retirement nest egg.
- Self-managed superannuation funds – As a trustee of an SMSF, the responsibility ultimately falls on you to ensure your fund remains compliant. One common issue many retirees face is not drawing at least the mandated minimum income from your pension. It is critical you check this before 1 July arrives and it’s potentially too late.
The above list is by no means exhaustive. It is absolutely critical you seek professional advice to ensure any strategies you implement are appropriate for your specific circumstances. Happy planning!
Information provided is in accordance with our disclaimer – users should ensure they read this disclaimer before continuing to use this site.