Get in touch with us

Book a FREE consultation
and receive your complimentary eBook

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.

    What areas of financial planning are you looking for advice on?

Book a FREE consultation
and receive your complimentary eBook

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.

7 EOFY Tax Tips for 2021

Our EOFY tax tips are the perfect opportunity to review strategies for reducing your tax bill and improving your investment position. 

This is because you can see what assessable income you have earned for the year, including any capital gains.

With the importance of this time of year for everyone who pays tax, which will be everyone reading this, these tips have also been featured in the Financial Review with our Managing Director James McFall.

Some EOFY tax tips and strategies we will always look at for our clients include:

Contribute To Super From Your Bank Account & Claim a Tax Deduction 

It is now possible to simply contribute to super directly from your bank account and claim it as part of your tax return.

This allows you to add to what has already been contributed and for most people will result in 15% tax vs up to 47% tax personally.

Depending on what you contributed in previous financial years, catch-up rules were introduced on 1st July 2018.

These could potentially allow you to make a larger contribution and boost the benefits further.

eofy tax tips for super contributions

These could potentially allow you to make a larger contribution and boost the benefits further.

Realise a Capital Loss 

The 2021 Financial year has been strong for investment markets.

If you have an investment that is currently a capital loss, you may consider selling it to offset some gains you have realised, therefore reducing the tax you have to pay this financial year. 

Co-Contribution

If you have earnt less than $53,564 and make a $1,000 contribution to super, you could be eligible for up to $500 from the Government.

Entitlements are automatically calculated and paid when your tax return is lodged.

Spouse Contribution

Boost your spouse’s super and reduce your tax. To be eligible your spouse must earn less than $40,000.

The maximum contribution is $3,000, which could result in a tax rebate of up to $540 or a potential ROI of 18%.

Bucket Company Strategy

Business owners may consider diverting some of their profit to a bucket company and investing it for the longer term.

Tax payable is limited to 30% and when treated as part of a retirement plan, may be payable in the future in a highly tax-effective manner. 

bucket company explained

Business Asset Purchase

Business owners may consider speaking to their Accountant about bringing forward the purchase of equipment and other business assets, to take advantage of instant asset write-off. 

To take advantage of the opportunities that exist for you, you should review your options asap. 

The difference between planning your tax position well and not can make a massive difference to how soon you are in a position to retire, so if you ever wish to seek advice on what you can be doing differently to help improve your retirement prospects, speak to the retirement specialists. 

Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.
Share this post:
FacebookLinkedInGmail

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.

See Our Services See Our Results

decoration leaves 1
decoration leaves 1
decoration leaves 1
decoration leaves 2
decoration leaves 2

Get In Touch

Interested to discuss something?
Have a question or comment?
Submit your details and we’ll be in touch.

Free Consultation

Free Consultation

Get started with your free strategy consultation and receive a copy of the MOST IN DEMAND Good Fortune Guide – written by Certified Financial Planner of the year 2020 national finalist, to help educate you on your financial plan.