The end of the financial year is looming and though there might not be a lot of time, there are a number of things you can do between now and June 30 that may put some money back in your pocket.
Many of these relate to your super.
Maximise your contributions
If you can afford it, maximising your concessional super contributions is a no-brainer.
You can get your employer to add the extra money from your pre-tax salary using salary sacrifice but now that the 10% rule has been scrapped, you may be able to make a contribution to your super and then claim a tax deduction.
Previously this was only available to self-employed people who earned 10% or less of their total income from an employer. Now you can take advantage of this perk either if you are self-employed or work for an employer.
This will help reduce your tax bill and give your super balance a boost. Just make sure you stick to the $25,000 limit.
Make a super contribution… and get up to $500 back!
Looking for a 50% guaranteed return? Then look no further than the government’s super co-contribution scheme.
It’s just a matter of getting in before June 30 this year.
The government’s super co-contribution scheme involves the federal government contributing up to $500 to your super fund.
To get this you have to make a $1000 non-concessional super contribution – that is, the contribution is paid from your after-tax income and doesn’t give you any tax deduction.
The maximum co-contribution is payable to those whose incomes are less than $36,813. It then reduces gradually until it phases out entirely when your income hits $51,813.
Remember, your contribution must be in your super account by June 30. It’s worth visiting the Tax Office’s online calculator to work out what you’re entitled to.
In the world of money there’s nothing more romantic than a spouse contribution. Not just a sign of commitment but by making a super contribution on their behalf you could save on tax too.
On July 1 last year the spouse income threshold increased, meaning more people are eligible to claim the tax offset for this financial year. Spouse super contributions can now be made for spouses earning up to $40,000 per year.
If your spouse has earnings below $37,000 you can claim the maximum tax offset of $540 when you contribute $3000 to their super fund.
Hurry though – you’ll need to get these contributions of love in before the end of June if you’re to qualify for the tax offset.
If you have an SMSF one of the important steps you need to take is to get a market value of your assets.
The ATO says valuations must be undertaken to reflect the value of assets held as of June 30 of every year adding that asset valuation is a key component in preparing meaningful SMSF financial reports. See the ATO website for more.
It’s also worth remembering that June 30 is a Saturday this year so make sure you act ahead of time – ideally at least two or three days ahead to make sure any contributions hit your account by June 30.