End of Financial Year planning
End of Financial Year planning involves stopping for a moment and considering whether your financial affairs are in order and then taking action to ensure you gain maximum impact for your savings and investment dollars. A continually evolving mix of laws and regulations caused by annual Federal Budget changes adds a zest of uncertainty to the mix.
End of Financial Year
Some people don’t even notice the end of financial year planning strategies and ideas that populate the investment world – but for those seeking to maximise the value of their incomes, expenditure and savings, time spent on end of financial year planning is time well spent. For others, it’s a great time to line up for bargains as retail stores and businesses do their best to maximise their own end of financial year planning!
End of Financial Year Strategies
Everyone will have their own preferences and ideas on maximising the remaining time before the end of financial year arrives on the 30th June (which this year falls on a Thursday, so you will need to check the close-off dates for any end of financial year planning you may have in mind..). There really is no “one-size-fits-all” solution to planning the best outcomes, so it’s a matter of taking stock of your current financial position, your capacity for savings and/or investment, your costs and expenses that relate to taxation and trying to pin all of that together into something closely resembling a plan.
Some of the most effective strategies for end of financial year planning are also the most straight-forward, such as making sure income-earning accounts are in the name of the lowest bracket taxpayer. For couples that usually means holding larger pools of interest or income earning assets in the name of the lowest earner. There naturally are all sorts of caveats to even this basic idea – but that is where professional advice from your Accountant can really help make a difference.
Another commonly overlooked area is share investment franking credits, which many retirees fail to claim as they don’t submit annual tax returns. Again, there are this or that caveats that will make this applicable to you or not, so it’s a matter for good personal research or professional advice.
In our business, our financial planner advisers work with clients’ Accountants to help provide information and feedback on areas that may impact taxation planning.
End of Financial Year Super Strategies
Superannuation can be a ridiculously complex area – but don’t be put off. There is a huge raft of information available for those who want to Do-It-Yourself, with the Australian Taxation Office website being full of pertinent and useful examples and information. It’s a great starting point. As is the MoneySmart website, which is a consumer information website maintained by the industry regulator – the Australian Securities and Investments Commission (“ASIC”).
The 30th June 2017 is very important for superannuation accounts, with a range of thresholds and changes occurring from that date. Every newspaper and financial update in the land will be talking tax and super and dates and thresholds over the coming 2 months so the purpose of this note isn’t to list strategies but simply to prod you to make a time to sit and review your plans and position to make sure you take advantage of the end of financial year strategies and planning that might be of benefit to you.
Make your plan – now!
Some people will have their plans and strategies perfectly set up and arranged to the best that research and quality professional advice can suggest. For everyone else, now is the time to take action and ensure your long term planning and strategies are working to your best advantage today.