As the end of the financial year approaches, there’s no better time to do some strategic planning and make informed decisions to help optimise your tax position and potentially boost any refund you may get.
Here are some essential tips that could help you minimise your tax bill before the 30 June deadline:
- Leverage Concessional Super Contributions
Making strategic contributions to your superannuation from your pre-tax salary can significantly lower your taxable income. Concessional contributions, taxed at a rate of 15%, can effectively reduce your tax burden, especially if your income is higher in a particular financial year. Be aware of the annual cap of $27,500, valid until 30 June 2024 for concessional contributions.
- Consider Non-Concessional Contributions
If you’re under 75 years old, you can consider making non-concessional contributions from your after-tax salary to boost your retirement savings. There is generally no tax on contributions, and earnings on your investment will be taxed at a maximum rate of 15 percent and tax-free in retirement. Be aware of the annual cap and other restrictions to avoid penalties. Learn more at the ATO.
- Donate to Charity
Charitable donations made to registered charities are tax-deductible, allowing you to support worthy causes while reducing your tax bill. Keep receipts for your donations to claim the deductions accurately.
- Consider Income Protection Policies
Explore the benefits of owning income protection policies personally rather than through superannuation funds. This can result in personal tax deductions, and paying premiums annually before year-end instead of monthly can further increase your deduction.
- Get Affordable Personal Financial Advice
Every person’s tax situation is unique, so seeking professional advice tailored to your circumstances can help you reduce the tax you pay overall. You can access affordable and compliant financial advice through digital financial adviser moneyGPS. With financial advice plans ranging from $90-$180, it’s within anyone’s budget to get help to make more informed financial decisions. And it’s totally free to get started.
Begin by completing the Money Check-Up. You’ll receive a FREE financial health check that recommends the best financial strategies and guides you on how to progress.
Get your FREE Money Check-Up Now.
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