Are your finances in order for end of financial year?
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- By Ashley Sim
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- Date posted:
- 21 July 2021, 8:30 AM
June 30 is rapidly approaching, which begs the question – is there anything I should be doing to improve my financial position beforehand? Here are three tips on things to check:
Super Contributions
- This financial year, if you are under 67, you may be eligible to contribute up to $25,000 into your superannuation including any amounts your employer may have contributed on your behalf. This time of year, is a great time to be reviewing your super contributions.
- If you already have a salary sacrifice arrangement with your employer, have you checked to see how you are going to ensure you will not exceed the concessional cap?
- Have you considered making additional contributions which may give you a tax deduction this year, and boost your retirement savings in the long run?
Claiming all Tax Deductions
- If you worked from home at all this year due to COVID-19 restrictions, the ATO has set a flat deductible rate of 80 cents per work hour for running costs, such as electricity, phone and internet for each day you were required to work from home. Make sure you keep a diary or timesheet of your hours each day.
- If you have incurred expenses that are directly related to earning your income whilst working from home, you may prefer to claim these actual expenses as a tax deduction rather than using the flat 80 cent rate. We recommend you speak to your accountant to work out which method best works for you.
Capital Gains and Losses
- If you have sold any share investments this financial year, now is a good time to consider what your capital gain tax position is for your portfolio. Do you have any losses that can be carried forward from previous years? Do you have any underperforming stocks you could sell to offset the gain? Could you make a contribution to super to assist with the taxable gain?
Let Us Help
If you are interested in discussing end of year tax planning, please contact Morgans Mackay today by calling (07) 4957 3033 or visiting the Morgans Mackay webpage.
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited (Morgans) AFSL 235410 ABN 49 010 669 726 as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans, its related bodies corporate, directors and officers, employees, authorised representatives and agents ("Morgans") do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
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