Level 3, 18 Dequetteville Terrace, Kent Town SA 5067

(08) 8362 0060

(08) 8362 0061


End of Financial Year Checklist

End of Financial Year Checklist

Planning for the end of the financial year is a little harder this year, with a federal election just days later which could result in sweeping changes to superannuation, negative gearing and business taxation. All the more reason to get on the front foot to make the most of the current tax arrangements while you can.

Now is the time to make any last minute adjustments to reduce your tax bill and maximise your long-term savings.

Pay expenses, delay income

Start by looking for ways to bring forward tax-deductible expenses to the current financial year and delay income until July. This is especially the case if your taxable income is likely to be higher this year than next.

You may be able to pre-pay 12 months’ interest on a margin loan, or pre-pay 12 months’ premiums on income protection insurance held outside super, and claim the full deduction in this year’s return. You might consider pre-paying membership fees for professional organisations and subscriptions for work-related publications.

Instant asset write-off

If you are a small business owner with turnover below $2 million and you have been tossing up whether to invest in new equipment, get cracking. Businesses with turnover below $2 million can claim an immediate deduction for the cost of assets up to $20,000.

And if the May 2016 federal budget is passed, from July 1 the income tax rate for small business will reduce to 27.5 per cent so it makes even more sense this year to delay income where possible.

Top up your super

Despite the uncertainty surrounding superannuation, it is still the most tax effective investment vehicle for retirement savings. So if you have any spare cash, consider making a personal contribution to super but do seek advice if you have any concerns about the best way forward in light of the changes announced in the May budget.

If the budget measures are passed, then the annual concessional (pre-tax) contribution limit will be reduced to $25,000 for everyone from 1 July 2017. Currently the limit is $30,000 or $35,000 for people aged 49 or more. For those over 49 in particular, it makes sense to take full advantage of the higher limits this year and next, while you can.

However, if you are thinking of making a non-concessional (after-tax) contribution to super, be mindful of the lifetime cap of $500,000 that came into effect on budget night. Sweeping changes are also proposed for transition to retirement pensions, but you can still enjoy the current arrangements until 1 July 2017.

Take advantage of government contributions

If you earn less than $35,454 this financial year and make an after-tax contribution to super, then you are entitled to a government co-contribution of up to $500. The co-contribution tapers out once you earn $50,454.

Review your investment portfolio

After another volatile year on financial markets, you may be sitting on some paper losses from shares or other investments. This could be a good time to sell some of your poor performers to offset against capital gains made on the sale of other investments over the past 12 months.

Where possible, it makes sense to sell investments held for at least 12 months to qualify for the 50 per cent capital gains tax discount.

Claim rental property deductions

Residential property has enjoyed another boom year in parts of the country, despite tighter lending requirements for investors and uncertainty about the future of negative gearing. Whether you are a new landlord or an old hand, make sure to claim all allowable rental property deductions.

You can claim an immediate deduction for interest on your investment loan, repair and maintenance and tenancy costs such as the preparation of a lease or eviction.

You can also claim some expenses over a number of years, such as the cost of depreciating assets, structural improvements and borrowing costs such as stamp duty and loan fees.

With so much change in the air, it is more important than ever to seek professional guidance from your tax accountant and your financial adviser, so give us a call on 08 83620060

Financial Advisor Adelaide

We are an award winning practice that has been providing financial advice to South Australians since 1969. We really enjoy getting to know our clients and building a relationship with them that lasts over many years. We have a diverse range of clients from mum and dad to AFL players to ASX CEOs. All of which have a diverse range of financial advice needs and very different relationships to maintain. Our clients describe a 'breath of fresh air', personable, expert and people with high integrity. Clients have also mentioned that they are not treated as a number and the advice is specific to them. Working with clients for clients.

Financial Planner Adelaide

The one most rewarding thing about being a financial planner in Adelaide is when you have been working collaboratively with a client in developing and building their goals and objectives and the come to fruition. This give both the clients and myself a real sense of achievement and to use the famous quote 'are we there yet?' and together we can say YES! There has never been a better time to look towards what you want to achieve and start a financial plan so you can get there too.

Financial Planning Adelaide

A person's financial story is like a jigsaw puzzle... "lots of pieces needing to be put into their correct places". A financial adviser can assist a client to put the pieces in the right places by having a series of simple conversations about where a they are currently situated, where they want to be and what strategies can assist them. Every client has a different financial story and goals. Each jigsaw puzzle will always be different. A good financial adviser is experienced at putting together a wide range of jigsaw puzzles. Helping a client put their own puzzle together and seeing their satisfaction is a wonderful feeling.

Barry Phillis, Chris Scriva and Owl Financial Management Pty Ltd are Authorised Representatives of GWM Adviser Services Limited Australian Financial Services Licensee Registered Office at 105-153 Miller Street North Sydney NSW 2060 and a member of the National Australia group of companies.

GENERAL ADVICE WARNING: The advice on this site may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

Opinions constitute our judgment at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. View Terms & Conditions >