The End of Financial Year is a time to make sure your affairs are in order and any important decisions are made and acted upon before 30 June 2014.
We at CABEL Financial have formulated a MUST DO checklist to help you plan for the end of financial year:
1. Determine when to incur your deductible expense
- If your income was lower than expected this year for reasons such as you were not working the entire year, you may wish to delay your expenses until next financial year
- Conversely, if you suspect that your income will be greater this year opposed to next financial year, it may be beneficial to bring forward deductible expenses to reduce your taxable income in this financial year.
2. Plan your Capital Gain Liability
Have you realised a capital gain this financial year?
- It may be beneficial to realise capital losses on an under-performing investment to offset the capital gain
- Look at potential deductions for this financial year to reduce your taxable income, which in turn will reduce your capital gain.
Will you realise a capital gain in the future?
- It may be beneficial to realise this gain in the current financial year if you suspect your income will increase over time or if you have had a modest income this year.
3. Utilise deductions
- Have you made a donation to a charity?
- Do you have income protection premiums to claim?
- Did you incur expenses on your investment property such as repairs?
- Make sure you have retained receipts for these expenses.
4. Superannuation Action Points
- Self Managed Superannuation Funds: Have you reviewed your investment strategy in light of the annual audit?
- Employees: Have you looked at the superannuation strategies to take advantage of the tax concessions available?
- Pension account holders: Ensure you have withdrawn the minimum pension payments for this financial year
- Low income earners: Are you eligible for the government Co-Contribution?
If you wish to discuss any of the strategies above, please call our office on (02) 8071 0306.