With the close of another financial year upon us, apart from being one year closer to retirement and living the dream than you were 12 months ago, it’s an opportune time to attend to one or all of the following:
1. Give your super a free kick
Now is a good time of the year to make additional contributions into super especially if you intend to claim those contributions as a tax deduction as well as lodging your tax return early in the financial year.
Why is that, you may ask?
Well, any surplus cash you have sitting in a bank account earning an abysmal rate of interest can be contributed into super before June 30 as a “personal” contribution and claimed as a tax deduction.
Providing you haven’t exhausted your $25K concessional contribution cap, that increased tax deduction, all things being equal, will most likely result in you obtaining an increased refund from the ATO once your tax return is lodged and assessed.
The benefits are twofold; you get an increased tax refund which can be directed however you wish whilst increasing the wealth you have accumulating in super.
2. Share the wealth
If you have a partner you should be thinking about your finances together and make the most of opportunities that present.
For instance, if your partner has taken time out of the workforce or is a low-income earner, there’s every chance their super could do with a boost. If your partner earns below $37,000 you can claim the maximum tax offset of $540 if you contribute $3,000 into their super before 30 June.
You get $540 off your tax bill whilst increasing the wealth accumulating inside super.
3. Check in on your goals
As we traverse life our needs and circumstances change, hence it is important to check in on your life and financial goals every 12 months to see how you’re tracking.
Are you on target for making your dreams a reality or do expectations need to be revised to take account of changes to your circumstances?
In relation to your super, at the end of the day, your super is your money. You are ultimately responsible for how it performs and grows. You need to ensure it is being invested wisely and in line with the timeframe you intend to access it.
As we enter winter and move another year closer to retirement, check in on one or all of the above…you might just get a good outcome in the future and surprise yourself.
Please note the above has been provided as general advice. If you would like more tailored financial advice, please contact us today. One of our advisers would be delighted to speak with you.