Top 10 financial decisions to make leading up to EOFY

June is the last month of the year to optimise finances before completing a tax return. Already a busy month for businesses it should also be a busy time for individuals optimising their finances. Here are the Top 10 financial decisions to make in the lead up to the end of the financial year.

1)    Set and review financial goals

Did you set a new years resolution or goals for the financial year? How are you tracking? It is hard to implement changes for the better without first setting goals. Have a think about what it is you would like to achieve, when you want to achieve them and what you plan on doing about it.

2)    Top up your Superannuation using pre-tax contributions

Pre-tax super contribution limits reset at the end of each financial year. By contributing up to these limits you optimise your retirement savings in a tax effective way. Contact me or your local Brisbane financial advisor in regards to the latest contribution limits and what considerations need to be made.

3)    Top up your Superannuation using after-tax contributions

After tax contributions are a great way to invest lump sums of money towards your retirement such as inheritance or profits from an investment property. Before making large financial decisions you should contact me or talk to your local Brisbane financial planner to compare all your options. For low and middle income earners who make after tax contributions to super the government offers co-contributions up to a maximum amount of $500. To receive these funds among other things you need to be employed as well as having the sum of your assessable income, total reportable fringe benefits and reportable employer super contributions $51,813 or less.

4)    Top up your Spouse Superannuation

Super balances between couples are often uneven due to someone taking time off work to raise children. The ATO offers tax offsets up to $540 to working partners who make spouse contributions. To be eligible, among other things, the sum of the spouse's assessable income, total reportable fringe benefits and reportable employer super contributions needs to be $13,800 or less. To check your eligibility talk to your local Brisbane accountant or click contact us today.

5)    Consider splitting your Super contributions with your spouse

Individuals are allowed to split up to 85% of their concessional contributions with their partner. This can have strategic benefits such as moving funds to the elder individual allowing earlier access of retirement savings or to the younger individual keeping funds preserved and non-assessable for Centrelink purposes for longer. Contact me or speak to your Brisbane financial planner to discuss which option would best suit your personal situation.

6)    Make required tax-deductible purchases

The key word here is required. Don’t get too excited when it comes to tax time and purchase tools or equipment you do not need simply because it is tax-deductible. A tax deduction helps but does not make supplies free. Think of it like a sale, it is only cheaper if you were going to buy it anyway.

7)    Pay your Income Protection policy annually

Income Protection premiums are tax-deductible and are cheapest when paid annually. So to pay less while maximising your cashflow consider paying your premium annually in June.

8)    Prepare your receipts before going to the accountant

Accountants either charge by the hour or according to complexity. To make your tax returns easier collect sort all of your receipts prior to meeting with your accountant. If you turn up with no financial records or a box of receipts you may miss important deductions and pay more processing your return.

9)    Scan and store your receipts electronically

Have you ever noticed how many receipts go blank after a year or two? Meanwhile the Australian Tax Office requires you to keep your financial records for five years. When someone is audited they seek assistance from their accountant which can be time consuming and costly. To make your life easier keep electronic records of all your receipts and tax returns. It may take awhile at first but will be easy to maintain and don’t forget portable backups.

10)   Use the right service providers

When making financial decision it is important to work with professionals. That’s why I take a holistic approach, help you plan and provide personalised services. This will ensure you get the best result and value for money. Click here to learn more about my company Constancy Wealth.

Tax and Superannuation laws can be complicated which is why it is important to work with professionals. As a Brisbane Financial Advisor, I can help you get clarity around your future, your options and the next steps in plain English. Book an appointment today to learn more.

What you need to know

Constancy Wealth Management Pty Ltd ABN 51 168 427 361 trading as Constancy Wealth is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.

This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This list contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.