Happy EOFY – Tips



With only 18 days to go until the end of the financial year there is still time to reduce your tax liability but you will have to act quickly. Here are a couple of strategies that could help to either reduce the tax you need to pay or maximise your savings:

Pre-pay your Income Protection Insurance

Did you know that if you pre-pay your income protection insurance before the end of the financial year you can claim the entire premium in this year’s tax return? It’s true, and if you need some extra deductions this year because of a higher than usual income this could be a great way of reducing your tax liability. On top of the tax deduction you will also be saving money by paying your premiums annually as insurers also offer discounts for annual premiums.

Claim a personal tax deduction for superannuation

If you are self employed or earning less than 10% of your total assessable income plus reportable fringe benefits and reportable employer superannuation contributions from employment you may be able to claim a tax deduction for all or part of your personal contributions to superannuation. This can be a great way to build your retirement savings while also reducing your taxable income. There are yearly age based limits on how much you can contribute which are $25,000 if you are 59 and under and $35,000 if you are over 60 years of age. You will also need to let your superfund know that you intend to claim a deduction before June 30 so please check with your accountant, tax agent, or financial adviser to ensure that the appropriate notice has been lodged and check if you meet all the conditions.

Spouse superannuation contributions

You may consider making a contribution to your spouses superannuation. If you do you may be entitled to a maximum tax offset of up to $540 for the financial year. There are various conditions that must be met in order to claim the deduction with the full deduction available on assessable incomes of $10,800 or less reducing to nothing at an assessable income of $13,800. This makes it a great strategy for those with a partner on a low income.


Have you heard of this one before? If you earn less than $48,516 in this financial year this is something to seriously consider as the Government is giving money away which doesn’t happen very often. I bet your dying to hear how this works . . . quite simply if you earn $33,516 or less this financial year, the government will contribute into your superannuation fund (tax free), $0.50 for every dollar that you contribute to super up to a maximum $500. So, if you contribute $1,000 into super before the end of the financial year the government will contribute $500. If you contribute $300 the government will contribute $150. That’s money for jam!!

For incomes above $33,516 the rate of contribution will decrease until it cuts out at $48,516. There is a great calculator you can use on the Money Smart website https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/super-co-contribution-calculator  to determine how much co-contribution you are entitled to, give it a go.

Happy EOFY!!




The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from an adviser.



Happy EOFY – Tips for property investors before its too late!!

Wowsa!! Can you believe that it is the end of financial year in just 18 day? How time flies . . . . if you are a property investor you still have time to make the most of a clever strategy to reduce your tax bill this year. Want to know more? Please read on . . . .
Have you ever heard of interest in advance? It’s a strategy that allows you to pre-pay the next year’s interest on your investment loans in advance. That’s right in advance!! It is only available on fixed rate investment loans and the conditions of these loans do vary between different lenders but it is a strategy worth considering.
There are several reasons why paying interest in advance can be a benefit for investors. The main reason is usually to gain tax benefits. It works by paying the interest that will be accrued in the following financial year (FY2014/2015) in the current financial year (FY2013/2014) and offsetting it against income earned in the current financial year (FY2013/2014). By why would you do it? Well, if an investor’s income was unusually high during the financial year or if a lower income is expected in the next financial year tis could be a good reason in order to maximise your tax deduction.
Lenders will also often incentivise clients to pay interest in advance by offering them a discount which results in less interest being paid overall. For investors looking to simplify their finances, by paying interest in advance, especially on an interest only loan, they can eliminate the need for periodic payments throughout the year. In terms of budgeting, paying interest in advance means that investors can enjoy a discounted fixed rate for the whole year, regardless of rises or falls in interest rates.
The interest in advance option is available to both new and existing investment loan clients. If you are considering it for yourself please consult a financial adviser to make sure that it suits your individual requirements.
Another way you can reduce your tax liability is to bring forward expenditure to before 30 June, if you are planning on repairs on your investment property. Care should be taken in determining whether a maintenance or repair is deductible or if it is considered a renovation or of a capital nature. Please consult a tax agent to make sure the work you are planning is deductible.