Last minute EOFY planning:
Remember to ensure you have maximised your EOFY position by Sunday, including:
• Salary sacrifice super contributions up to a total of $25,000 pre-tax per individual. All other super contributions are taken into consideration towards this cap, including the 9% you receive throughout the year from your employer, as well as any insurance policies you own in the superannuation environment for example, paid for from pre-tax contributions.
• Pre-pay investment interest – you may consider prepaying your investment interest to capitalise on receiving the tax deduction in this financial year
• Pay Income Protection Premiums – Income protection is fully tax deductible, so paying for it in this financial year will ensure you get the deduction now, rather than 12 months time!
• Pay accounts and/or tax deductible bills that relate to your investment property, such as insurance policies or gardening bills
• Co-contribution – if you are earning between $31,920 and $46,920, you will be eligible to co-contribution from the government. Assessable income below $31,920 makes you eligible for a 50% co-contribution up to $1,000. This means that a contribution of $1,000 to super will be supported by the government with $500. For every assessable dollar earned above $31,920, but below $46,920 the co-contribution entitlement will be proportionally reduced EG: if assessable income is $40,000 co-contribution entitlement would be $236. Importantly it is still a 50% arrangement so the amount you would have to contribute in this example is only $472. To be eligible for co-contribution it is essential that an income has been earned throughout the year. This in theory could be as little as $1 of employment income.
For further discussion about your EOFY planning, please feel free to contact our office.