End of Financial Year is Approaching
As we approach the end of the financial year, read below a simple checklist from our new WNA Corporate Partner, Sound Financial Solutions to help you optimise your tax position before June 30.
Concessional Contributions to Superannuation
Have you maximised your pre-tax contributions to superannuation?
The current concessional contributions cap is $30,000, allowing you to contribute up to this amount in combined employer contributions, salary sacrifice, or personal deductible contributions for this financial year.
Carry Forward Contributions to Superannuation
Are you aware of your eligibility for carry forward contributions?
If your superannuation balance was below $500,000 as of June 30, 2024, you can utilise carry forward contributions if you have unused concessional caps from the previous five years. This is particularly relevant if you have surplus cash in your bank accounts and wish to make additional contributions to superannuation to reduce your taxable income for FY25.
Please see previous years caps below.
Annual Premium Payments for Income Protection
Do you have Income Protection insurance in place?
This coverage provides up to 70% of your salary if you are unable to work due to temporary or permanent disability. Income Protection premiums are tax-deductible, so consider paying them annually before June 30 instead of monthly. This approach not only helps with tax deductions but may also offer an additional 8% discount on premiums.
Prepaying Interest on Fixed Rate Investment Loans
If you have an existing investment loan, you may have the option to switch to an Interest Only in Advance product with your bank. This allows you to prepay next year’s interest, thereby increasing your deductible costs for this financial year.
These straightforward strategies can significantly enhance your tax position as we close out the financial year.
For more information, or advice relating to your specific situation, please visit Sound Financial Solutions.