The end of the financial year is almost here. If you haven’t planned how you will maximise your tax return and save some tax, take note of these top tax tips. Here are some taxes saving strategies which you may like to consider:
- Review your investment portfolio to determine whether investments should be sold to offset any capital gains or losses made throughout the financial year.
- Make sure you get Capital Gains Tax Concessions by holding on to assets for more than 12 months.
- Maximise tax deductions through super contributions. Alternatively, make a contribution into super for your spouse – this could provide you with a tax offset.
- Borrow to invest through home equity loans, margin lending, or protected equity loans and pre-pay the interest.
- Review income distributions through family trusts. You can lose franking credits in some circumstances if a family trust election is not made.
- Sort through your receipts and make sure your records are up to date.
- Make a non-concessional contribution to super to receive the Government Superannuation Co-contribution. You may particularly like to consider this if you are a low income earner.
Take care with “tax effective” investments
As the end of the financial year approaches, tax is on a lot of peoples’ minds. The golden rule, when considering any investment is to focus on the quality and prospects of the assets and to treat any possible tax advantage as an added bonus. Tax deductions aren’t everything, over time a good investment will be much more valuable than a tax break.
Every situation is different so you should seek expert help from one of our financial planners to help you understand the tax implications and alternatives for your personal circumstances.
