02 9925 0522 mail@csp.com.au

It pays to be tax smart. It really does.

No matter what your situation, age or income, a little bit of end of financial year planning can go a long way. It can help you:

• boost your retirement savings

• maximise your Government entitlements, and

• minimise your tax liabilities.

At CSP we can sit down with you and look at the best strategies to see which suits you best. The following strategies are worth investigating.

Strategy

If you …

You may want to …

So you can …

1. Get more from your salary or bonus    are an employee sacrifice your pre-tax salary or bonus into super rather than receive it as cash  • reduce tax on your salary or bonus by up to 34%• take advantage of the contribution cap that applies in this financial year 
2. Make tax deductible supercontributions  earn less than 10% of your income1 from eligible employment (e.g. you are self-employed or not employed) invest in super by making concessional contributions • claim your contribution as a tax deduction• take advantage of the contribution cap that applies in this financial year 
3. Use super to manage Capital Gains Tax make a capital gain on the sale of an asset this financial year and earn less than 10% of your income1 from eligible employment invest the sale proceeds in super • claim a portion of the contribution as a tax deduction• Increase your retirement savings 

 

4. Get a super top up from the Government earn less than $49,4881 pa, of which at least 10% is from employment or a business make a personal after-tax super contribution • qualify for a Government co-contribution of up to $500• increase your retirement savings 
5. Boost your partner’s super andreduce your tax 

 

have a spouse who earns less than $13,8001 pa make an after-tax super contribution on their behalf • receive a tax offset of up to $540• increase your spouse’s retirement savings
6. Pre-pay income-protection premiums and reduce this year’s tax   are employed or self-employed pre-pay 12 months’ income protection insurance premiums • claim your tax deduction upfront• pay less income tax this financial year
7. Offset a capital loss against a capital gain have received capital losses from your investments utilise the capital losses against any capital gains • manage tax on your investments more efficiently 

 

8. Pre-pay investment loan interest have (or are considering establishing) a geared investment portfolio pre-pay 12 months’ interest on yourinvestment loan • manage your cash flow more efficiently

• potentially pay less income tax this financial year

 

9. Review Asset purchases  

 

Own a small business Purchase equipment and other business assets worth up to $20,000 • instantly claim a tax deduction upfront for the full amount(The concession can apply to more than one asset purchased in the same year.) 
10. Write off Bad debts   Are a small business and have a bad debt outstanding from the previous year Write it off in the current year • Claim back a GST credit

Note: To use strategies in relation to super contributions, you generally need to be eligible to make super contributions. Furthermore, you won’t be able to access your super until you satisfy a condition of release.

1 Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply.

2 Super strategies should be in consideration of concessional and non-concessional caps.

 Super Contribution caps for 2014-2015 FY

 Concessional contributions cap

Income Year

Amount of cap

2014-2015

$30,000/$35,0003

3 Higher cap applies for clients aged 49 or over at 30 June 2014.

Non-Concessional contributions cap

Income Year

Amount of cap

2014-2015

$180,000/$540,0004

4 People under age 65 at any time in the financial year may effectively bring-forward two years’ worth of non-concessional contributions allowing them to contribute $540,000 at any time over a

Three year period without exceeding the cap. Note: If a person has invoked the “Bring Forward” rule in a particular FY, their non-concessional cap will remain at three times the cap in the first year.

 Annual Pension Draw down Limits for 2014-2015 FY

Age

Drawdown %

Under 65

4%

65-74

5%

75-79

6%

80-84

7%

85-89

9%

90-94

11%

95 and over

14%

 

Confused about how this all relates to your personal situation? Call us on (02) 9925 0522