Professional financial planners address change ahead of End of Financial Year
With end of financial year fast approaching, the FPA invited members to share their top tips for financial planners during this busy period. Mark Rantall, CEO of the FPA said:
“This past year has seen many changes for the financial planning profession. FoFA reforms and other industry changes may have left some financial planning businesses under increased pressure and perhaps left confusion around certain topics.
“End of financial year can be a very busy time for many and with the FoFA reforms taking effect, financial planners need to be more prepared than most. This is one way our members are sharing experience and tips to assist in a smooth end of financial year for financial planners and ultimately their clients.”
The FPA has chosen some of the top tips submitted by members and published them on the website in order to assist other financial planners at this time. Here are three unique tax tips that focus on specific areas that will change from 1 July 2012:
- Private Health Insurance 30% Rebate: for those clients that will be impacted by the means testing of the private health insurance rebate they may be able to take advantage of the current 30% rebate if they pre-pay their annual private health insurance premiums by Friday 29 June. Please make sure your clients check with their private health insurance provider for details.
- Concessional Contribution Caps: for those clients aged 50 and over, this is their last chance to take advantage of the $50,000 concessional contribution cap (contributions must be received by the respective Super Fund by Friday 29 June) – this is especially important for your self-employed clients wanting to claim a tax deduction.
- Government co-contribution: for those clients eligible for the government superannuation co-contribution scheme this is their last chance to receive a maximum of $1,000 before it is reduced to $500 next financial year. Remember your client must make a non-concessional contribution and their co-contribution will be dependent on their income.