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Important checklist to ensure your financial affairs are in order

With June 30 rapidly approaching, retirees need to closely review the past year – especially from a tax perspective – and begin their planning for the coming year.

June 30 is fast approaching – and that means getting your financial affairs in order. So, here are some tips to put yourself in the best possible tax position and prepare for the year ahead. 

First things first. Take a step back to get a holistic view of your financial situation, including income, expenses, investments, debts and savings. This will ensure any decisions about what course of action to take this financial year are better informed, especially as they relate to tax, as well as planning for the year ahead.

If you have any doubts about your financial situation, don’t hesitate to get financial advice. Remember, tax laws and financial regulations are complex and do change. It will cost, but it just might be the best financial decision you make.

So, things to do.

  • Maximise superannuation contributions

    Check your eligibility for concessional contributions, and, if applicable, ensure you maximise your concessional contributions up to the cap of $27,500 for the 2023-24 financial year. Consider utilising carry-forward provisions if you have unused cap amounts from previous years and your total superannuation balance is below $500,000. Remember, too, that from July 1, 2024 the concessional contribution cap will increase to $30,000. 

    The same applies to non-concessional contributions. If this applies to you, consider making the maximum $110,000 non-concessional contribution before June 30, 2024. From July 1, 2024 the non-concessional cap will increase to $120,000 (or $360,000 using the carried forward provisions). If you have more than $110,000 available to contribute into your superannuation fund, consider waiting until 1 July to trigger the carried forward provisions.

    The spouse super contribution offset is another option. If your spouse has less than $40,000 a year in taxable income, you can contribute to their superannuation and claim a tax offset up to $540 in your tax return.

    Manage your investable capital gains

    Evaluate your investment portfolio and consider selling assets that have incurred losses to offset capital gains. This can help reduce your overall tax liability on profitable investments. If you have no unrealised losses, consider deferring the sale of your investable assets till after June 30, 2024 if the assets are held in your personal name or distributed into your personal name from a family trust structure as marginal tax rates will be reduced from July 1, 2024.

    Pre-pay deductible expenses

    If you have an investment property with a mortgage or a margin loan, consider pre-paying interest for the next 12 months, bringing forward the deduction to the current financial year.

    Maximise charitable donations

    Make donations to registered charities and claim a deduction, ensuring you receive receipts. The taxman might just require evidence.

    Complete a notice of intent with your superannuation fund

    A personal (after-tax) super contribution requires you to complete a notice of intent form with your superannuation fund before June 30 if you intend to claim a tax deduction.

    Check your will and insurance policies

    The end of the financial year is an excellent time to review your will to ensure it aligns with your personal situation. Have you welcomed a new grandchild into the family? Has someone divorced? It’s so easy to overlook your will when something significant changes in your life, so reviewing it at the end of each financial year is a good idea. In the same way, review your insurances – life, health, home and contents – to ensure you have adequate coverage for your income, expenses and lifestyle. 

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