Time to Write some cheques.
The start of June brings cooler temps and the smell of backyard fires and an extra 2 minutes under the Doona as you psyche up to face the day. June 30 is an important date in the financial year as it is the last day in which to complete your tax planning tasks. Aside from the fact that you have 364 other days of the year to get this done, there has always been a mad rush to get your super contributions in.
I have seen contributions made on this date and they miss the cut off and have missed out on significant cost savings as a result.
Don't be fooled. Get your super contributions in before June 20 to ensure that you don't miss out.
Many of our business clients and professionals have already made the maximum $25,000.00 personal contributions for each other. Cashflow is important when considering making these end of year contributions. You still need enough money to keep your business running which is why it is rewarding working with those businesses that make maximum deductible contributions as part of their annual cash flow plans.
Who wouldn't want to pay tax at 15% instead of 30% or higher? Am I right?
Now there have been some changes to super contributions limits but these won’t come into effect until July 1, 2021.
A strategy that many business owners may not be aware of is being able to access catch up contributions from 2018 -19. Potentially, you might be able to contribute up to $75,000.00 and claim all of this as a tax deduction assuming you have had no contributions made in the last 3 years and your current super balance is less than $500,000.00 at July 1 the start of prior financial year
We have applied this strategy to a number of clients who have triggered significant capital gains such as selling an investment property or receiving a sizeable inheritance that has capital gains. This is a great strategy to minimise tax and ensure that you get to keep more of your money.
Please reach out if you need to discuss your plans and looking to reduce some tax this financial year.
