20 March 2013

Smart strategies for June 30

Written by  James Published in General
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With the end of financial year just around the corner, now is the time to review your finances. Putting in place some smart strategies could improve your overall financial position, and allow you to take advantage of a number of opportunities.


Boost your superannuation throughout your lifetime. By salary sacrificing into super, you can reduce your taxable income, while growing your super in a tax-effective environment. You pay just 15% tax on contributions to your super fund from pre-tax salary, and after-tax contributions are not subject to any additional contributions tax. Investment earnings and realised capital gains within the super fund are taxed at a maximum rate of 15%.

Remember that contribution caps do apply, which limit the amount you can contribute each financial year. Those under age 50 can contribute up to $25,000 each financial year, and those over age 50 can contribute $50,000 in 2010/11.

The superannuation co-contribution scheme is also a great way to grow your super. The government will match your personal after-tax contributions, up to a maximum of $1,000 each financial year. If your income exceeds $31,920, the Government will contribute a reduced amount, which cuts out when your income reaches $61,920.

You may also want to help your spouse to grow their super by making a contribution to their super fund. If your spouse receives an income of less than $13,800 per annum you could be eligible for a tax offset of up to $540.

Your investment portfolio

Review your investment portfolio to ensure that it’s consistent with your asset allocation and risk profile and rebalance if necessary, and check whether you’re in a position to utilise any capital gains or losses.

While reviewing your investment portfolio, it’s a good idea to think about whose name the investments are to be placed in, so that income can be distributed more evenly, estate planning issues can be considered and retirement funds can be accumulated for the lower earning (or non-working) spouse.

Protect your income

Your income is one of your most important assets, providing you with the means to build your wealth and fund your lifestyle, yet many Australians have not taken steps to protect it. An income protection policy can provide a replacement for up to 75% of your income if you are unable to work as a result of illness or injury. In most cases, the cost of the income protection premium is fully tax deductible.

Some financial strategies could directly impact your tax position, so it’s important to discuss with Stephen & Partners in conjunction with your registered tax agent.

Source: Charter Financial Planning Limited

The articles appearing on this website provide general information only. You need to consider with your financial planner your investment objectives, financial situation and your particular needs prior to making an investment decision.

Read 8881 times Last modified on Thursday, 21 March 2013 07:15

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