How to make some extra savings before June 30
Imagine what you could do with the money…
- Reduce your home loan
- Top up your Super
- Have a holiday
- Deposit for an investment property
- Upgrade your car
Before EOFY – reduce your Taxable Income by:
Top up your Superannuation:
- ‘Concessional contributions’ through salary sacrificing and make full use of the $27,500 limit. If you didn’t get around to asking your employer, you can make them yourself, you just need to lodge the necessary paperwork with the fund and claim a personal tax deduction.
- Make a super contribution on behalf of your partner – If your spouse earns low or no income, you may be able to claim a tax offset if you contribute to their Super fund.
- Get the government to co-contribute into your Super – If you earn $56,112 or less, you may be eligible for a ‘Low-Income Superannuation Tax Offset’ (LISTO) of up to $500 per year.
Pre-pay expenses you pay annually – That way you can claim the deduction, for example, Income Protection &/or investment loan interest (fixed loans only).
Review the ownership of your investments – As there may be options to include other members with lower incomes (such as children or grandchildren) to distribute the investment income.
Arrange a property depreciation report – If you have a rental property, a Property Depreciation Report (prepared by a Quantity Surveyor, such as BMT) will allow you to claim Depreciation and Capital Works Deductions on capital items within the property and on the property itself.
Purchasing a car with the EOFY bargain – Dealerships are usually clearing stock at the EOFY so you can get an extra good deal. Plus, save on tax by Salary Packaging the purchase and running costs of the vehicle.
Or have you sold a capital asset, such as an investment property, a business asset or some shares and received a capital gain? Consider what options you have to reduce the impact of your increased taxable income.
Now get moving, EOFY is fast approaching!
“Got any questions? The FAA Team are here to help!”
John Hehir
