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You need to consider many things at the end of financial year – minimum mandatory pensions, superannuation contributions, wealth strategy and investment debt. You need to review these to maximise opportunity and minimise risk.  You should be strategic and proactive during this time so it’s best to seek advice from your accountant.

Superannuation

It isn’t too late for wage earners to top up their superannuation guarantee contributions for the remainder of the financial year. You can facilitate this through salary sacrifice arrangements with your employer or making a concessional contribution to super with any savings or surplus cash that provide you with tax deductions. You need to lodge the right form with your super fund to claim tax deductions on your contribution. Review contribution levels to make sure you are within the limit. Those aged between 65 and 75 would need to pass the work test to make personal tax-deductible contributions. Business owners can consider company contributions to super as an effective tax planning and wealth accumulation strategy. Plan this with your accountant with reference to your plan.

If your total super balance is less than $500,000 on 30 June of the previous financial year, you may contribute more than the general concessional contributions cap for the unused amount. This is available for five years. Non-concessional contribution cap is still at $100,000 so the bring forward rile means a $300,000 lump sum contribution may be possible. If your total super balance is equal or more than $1.6 million, you can’t make non-concessional contributions. Those over 65 years of age cannot take advantage of the bring forward rule as well and need to pass the work test to make after tax super contributions.

In some cases, you can make $3,000 contribution into your lower income earning spouse’s super fund to get a tax rebate of $540 or 18% of the $3,000 added to your retirement. The income threshold for the latter remains at $37,000 – a lower threshold where you can get full tax rebate and $40,000 where you can get a portion of the tax rebate with non for income above $40,000. If you have a total income of less than $54,837, you can make personal non-concessional after-tax contribution to super and may receive a $500 government co-contribution.

Those with taxable income of less than $37,000 can expect a 15% refund of their contributions tax deducted from their super account (up to $500) if their employer makes concessional contributions on their behalf.

Those above 65 years that meet the eligibility requirements may make a downsizer contribution into their super up to $300,000 from the proceeds of their home. The downsizer contribution must be made to super in 90 days of receiving the proceeds or date of settlement.

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As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

Sky Accountants Ballarat

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 97444522

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437