Autumn 2012

The end of financial year is almost upon us

Are you ready for tax time? Are you on track with your financial goals?

Listed below are tips on the types of things you should be thinking about in the lead up to the end of the financial year.

It can seem daunting preparing for end-of-year tax. We’re here to help. Our advice is tailored to maximise advantages to you, while remaining compliant with tax law.

We also have a wealth of information on a range of taxation, accounting and financial planning topics, including up-to-date news from the Australian Tax Office.

Please don’t hesitate to contact us if we can be of assistance.

View the following documents for further information:

Now is the time to review your financial position - before 30 June

With 30 June 2012 rapidly approaching, now is the time to review your financial position and consider any super and tax-effective strategies that might be appropriate for you.

Using a number of strategies effectively can help ensure that more of your money ends up where you would like it to go – working towards your investment goals.

Key strategies include:

prepaying interest
salary sacrificing
government co-contributions
spouse super contributions
personal contributions
non-concessional contributions.

The flyers, above, describe these strategies in greater detail and include case studies to demonstrate how they can work.

It’s important to note that these strategies must be implemented before 30 June 2012 to take effect in this financial year. Restrictions and eligibility criteria apply to some of these strategies, so if you’d like to find out more about how they might relate to your personal circumstances, please call Ben Littleton on 07 33917566 to arrange a suitable time for an appointment. Ben can take you through the strategies in detail and help you decide whether any are appropriate for you.

Are you making the most of your super contributions cap?

You may be aware there’s a limit to how much super you can contribute from before-tax income each financial year. This is known as your ‘concessional contributions cap’, and there are two key reasons why you need to know exactly what this amount is:

If you haven’t reached your cap, there’s an opportunity to boost your super and reduce your taxable income this financial year.
If you have reached your cap, you may be subject to penalty tax of 31.5% on any excess super contributions you make before 30 June – that’s on top of the 15% tax already incurred on these amounts.

Unlock your super while you’re still working

If you’re aged 55 or over, Transition to Retirement (TTR) rules mean you may be able to access your super while you’re still working. This could potentially open up a range of flexible working and lifestyle options, such as reducing your working hours without reducing your income. Just as importantly, a TTR strategy can also potentially improve the tax-effectiveness of your income – which could actually help you grow your retirement savings faster.

Did you know we can arrange self-managed super fund loans?

Superannuation funds can now borrow money to purchase real estate. An investor can have just as much choice and control over investment property while using superannuation funds as they would by investing outside superannuation.

Many Australians have significant money invested in superannuation, and more and more are establishing their own self-managed super funds (SMSF). Many people would like to be able to include leveraged real estate in their superannuation investment portfolio.

Until recently, this has not been possible because of restrictions on superannuation funds borrowing and charging their assets. The Superannuation Industry Supervision Act (SIS ACT) was amended in September 2007 to allow super funds to borrow and charge their assets so long as a special structure is used. SMSFs may choose to gear their real estate investments in order to diversify risk, increase the yield on the investment, and because many funds do not have sufficient money to purchase real estate outright

Frequently asked questions regarding SMSF loans (doc)