Immediate End of Financial Year Considerations

With the end of financial year fast approaching, we wanted to remind you about the importance of considering what you can do from a tax and superannuation perspective prior to the 30th of June. This includes superannuation contributions.

Some points for consideration:

  1. Concessional Contributions:
    Make a personal, tax-deductible contribution of up to $27,500. This enables you to ‘top up’ to $27,500 if you have had employer or salary sacrifice contributions made on your behalf during the year. If you don’t receive contributions via an employer (eg. you are self-employed) you are still able to contribute and claim a deduction. If you are not working at all and under 67 you are also able to contribute and claim a deduction. This may assist if you have passive income and are paying tax.

  2. Non-Concessional Contributions:
    If eligible, contribute up to $110,000 after-tax per year or up to $330,000 over three years using the “bring-forward rule.” (As the limits increase in 24/25 you should consider this when making a Non Concessional Contribution. We would be pleased to assist.)

  3. Spouse Contributions:
    Contribute to your spouse’s super if they earn less than $40,000 to benefit from a tax offset of up to $540.

  4. Government Co-Contribution: If you’re a low to middle-income earner, consider making
    personal non-concessional contributions to potentially receive a contribution to your superannuation of up
    to $500 from the government.

  5. Investment Review: Take a moment to review your investments. Consider your holdings from a Capital Gains Tax (CGT) perspective.

  6. Loan Review:
    Reviewing your loan prior to the end of the financial year can be beneficial as it allows you to assess your financial situation and potentially identify opportunities for savings or refinancing.

  7. Paying Insurance Premiums:
    Consider pre-paying premiums before the end of the financial year. This can potentially provide a tax deduction.

  8. Pre-paying Interest on Investment Loans: If you have investment loans, consider pre-paying the interest for the upcoming financial year. By doing so, you may be able to claim a tax deduction in the current financial year.

If you have a Self Managed Superannuation Fund (SMSF): It is crucial that all members in pension phase meet the minimum pension requirements for this financial year. Please ensure that you have withdrawn the required minimum pension amount to comply. 

Luke Spiller – Principal Adviser – SCM Wealth Management