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Article Tips to finish the financial year on a high note

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As June 30 fast approaches, there is still time to consider the strategies available to you this financial year to build your wealth.

The opportunities to finish the financial year on a high note are endless, here are just a few:

Paying income protection premiums in advance

Income protection insurance pays a monthly benefit of up to 75% of your salary if you are unable to work due to illness or injury, with the premiums typically being tax deductible. Paying premiums in advance enables you to bring forward the following financial year’s premiums to claim a tax deduction this financial year. This strategy enables you to protect your existing and potential wealth by taking out insurance to cover you against those events which can disrupt even the best laid plans.

Paying interest in advance

Borrowing to invest is a tax-effective means of wealth accumulation – investors borrow for investment purposes, and claim the interest on the borrowed funds as a tax deduction. This strategy is consistent with many investors’ objectives as it allows you to purchase property, shares, or any other asset that generates assessable income.  It also enables you to bring forward and pay next year’s interest cost and claim a tax deduction for those costs this financial year.

Making a non-concessional contribution to super (Government Co-contribution Scheme)

There is a federal government scheme in which people who earns $33,516 or lessa year (for the 2013/2014 financial year) and make a non-concessional contribution to superannuation (a contribution for which no tax deduction will be claimed), may be eligible to receive a government contribution to their superannuation. Under the scheme, the government will contribute $0.50 every dollar you contribute to your super fund in after-tax dollars, up to a maximum of $500 a year. For those eligible, this strategy can provide you with a guaranteed return on every dollar you contribute to super.

Making a concessional contribution to super

Concessional contributions to superannuation are those contributions made to super for which a tax deduction is being claimed.  Using this strategy, anyone who earns less than 10% of their income from an employer can claim a tax deduction for contributions they make, up to maximum limits. This strategy can assist you to bolster your retirement savings whilst managing your tax liability prior to retirement.

Whilst there are many end of financial year strategies that have tangible benefits to assist both your wealth accumulation and protection objectives, there aren’t many days left to act.  Speak to a financial planner and take action to benefit these and many other end of financial year strategies.

Modoras Pty Ltd ABN 86068034908 AFS License No. 233209. This article contains general advice information only and is not intended to represent specific personal advice. No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional financial advice before making any financial investment decision.

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  • this is a great, in depth article. i would love to see a follow up to this if possible, with more advice and ideas

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  • Good tips! Good knowledge to know! Thanks for sharing this!

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  • Thanks for sharing this information; very useful.

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  • Interesting article and read.

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  • thanks for the interesting read

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  • Thanks for some wonderful tips.

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  • I know what you mean! If you need help, check out our website especially this page: http://www.modoras.com/resource/articles/2014-individual-income-tax-return-checklist/. If you have any other questions. I’m more than happy to help!

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  • ugh tax time 🙁 thanks for these tips!!!

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  • I unlike so many others do not look forward to the end of the financial year as I normally either get almost nothing back or like last year have to pay hundreds of dollars. Thanks for the article. I’m actually quite concerned about the over 31 health insurance thing, as it’s something I don’t know much about and I could really do without being slugged for yet another thing. I must do more reading on it.

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  • Katrina seems to have sound advice.This was interesting read ,Interest earns tax saving ,sounds good !

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  • GrEaT tips and article. Thanks for sharing.

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  • Good read and useful tips

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  • Great informative article thanks for sharing

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  • A good accountant can help, too.

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  • Thanks for the tips I need all the help I can get! Great article cheers for sharing!

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  • If only I had my super all sorted out, I have been trying to enroll for years but everytime I fill out the forms they tell me I have done it incorrect & need to do it all over again but don’t tell me where I stuffed up 🙁
    Another company has 3 accounts for me but refuse to enroll them into one. Super is stressful & I don’t understand how it works sorry.

    • Super can definitely be stressful. And those multiple account will be costing more in admin fees. I’m happy to help you sort it out. You can email me at katerina.sousalis@modoras.com or phone at 1300 888 803. Thanks!

      • I would definitely get in touch with a financial planner and have it sorted for you. You would be paying multiple fees on all accounts, not to mention that you may have insurance attached to all of those accounts that you may not need and hence paying fees for as well. The quicker you get this sorted, the quicker your super can grow. Please look after your retirement nest egg!

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  • Some important and useful tips

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  • How can it be the end of the financial year when we’ve only just had Christmas? Seriously though, some very good points here to maximize savings, especially to do with superannuation. Thanks Katerina!

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  • Good tips regarding my superannuation.

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  • Borrowing was always a last resort in my younger days and debt was something to avoid, but people are so informed on financial matters these days and actually borrow money to make money! Somehow we struggled through and mostly managed to live within our means. I’m glad that there are financial advisers around to help with financial decisions these days to make the most of what we have.

    Reply
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