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Book a FREE consultation
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Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

10 Smart End of Financial Year Strategies for 2014/2015

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It pays to be tax-smart. It really does. No matter what your situation, age, or income, a few EOFY strategies can go a long way.

It can help you:
• boost your retirement savings
• maximise your Government entitlements, and
• minimise your tax liabilities.

Your financial adviser can sit down with you and look at the best strategies to see which suits you best. The following strategies are worth investigating.

Strategy If you … You may want to … So you can …
1. Get more from your salary or bonus are an employee sacrifice your pre-tax salary or bonus into super rather than receive it as cash • reduce tax on your salary or bonus by up to 34%
• take advantage of the contribution cap that applies in this financial year
2. Make tax deductible super contributions earn less than 10% of your income^ from eligible employment (e.g. you are self-employed or not employed) invest in super by making concessional contributions • claim your contribution as a tax deduction
• take advantage of the contribution cap that applies in this financial year
3. Use super to manage Capital Gains Tax make a capital gain on the sale of an asset this financial year and earn less than 10% of your income^ from eligible employment invest the sale proceeds in super • claim a portion of the contribution as a tax deduction
• Increase your retirement savings
4. Get a super top up from the Government earn less than $49,488^ pa, of which at least 10% is from employment or a business make a personal after-tax super contribution • qualify for a Government co-contribution of up to $500
• increase your retirement savings
5. Boost your partner’s super and reduce your tax have a spouse who earns less than $13,800^ pa make an after-tax super contribution on their behalf • receive a tax offset of up to $540
• increase your spouse’s retirement savings
6. Pre-pay income-protection premiums and reduce this year’s tax are employed or self-employed pre-pay 12 months’ income protection insurance premiums • claim your tax deduction upfront
• pay less income tax this financial year
7. Offset a capital loss against a capital gain have received capital losses from your investments utilise the capital losses against any capital gains • manage tax on your investments more efficiently
8. Pre-pay investment loan interest have (or are considering establishing) a geared investment portfolio pre-pay 12 months’ interest on your investment loan • manage your cash flow more efficiently
• potentially pay less income tax this financial year
9. Review Asset purchases Own a small business Purchase equipment and other business assets worth up to $20,000 • instantly claim a tax deduction up front for the full amount (The concession can apply to more than one asset purchased in the same year.)
10. Write off Bad debts Are a small business and have a bad debt outstanding from the previous year Write it off in the current year • Claim back a GST credit

Note: To use strategies in relation to super contributions, you generally need to be eligible to make super contributions. Furthermore, you won’t be able to access your super until you satisfy a condition of release.

^Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply.

Super strategies should be in consideration of concessional and non-concessional caps.

Super Contribution caps for 2014-2015 FY

CONCESSIONAL CONTRIBUTIONS CAP

Income Year Amount of cap
2014-2015 $30,000/$35,000^

^ Higher cap applies for clients aged 49 or over at 30 June 2014.

NON-CONCESSIONAL CONTRIBUTIONS CAP

Income Year Amount of cap
2014-2015 $180,000/$540,000^

^ People under age 65 at any time in the financial year may effectively bring forward two years’ worth of non-concessional contributions allowing them to contribute $540,000 at any time over a

Three year period without exceeding the cap. Note: If a person has invoked the “Bring Forward” rule in a particular FY, their non-concessional cap will remain at three times the cap in the first year.

Annual Pension Drawdown Limits for 2014-2015 FY

Age Drawdown
Under 65 4%
65-74 5%
75-79 6%
80-84 7%
85-89 9%
90-94 11%
95 and over 14%

“GOOD FORTUNE NEEDS GREAT PLANNING”

 


GENERAL DISCLAIMER:

The content of this presentation is intended to be general information only and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should consider its appropriateness having regard to these matters or obtain relevant professional financial advice before making any financial decisions.  Examples are illustrative only. Each person should obtain any relevant professional financial, taxation and social security advice before making any financial decisions.

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About Yield - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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