End Of Financial Year (EOFY) Is Fast Approaching

June 2, 2022

Here’s our thoughts on what to do next

It’s important to start planning improvements for your financial position prior to 30 June 2022.

Planning means taking stock of your income, expenses and financial assets to check your tax position – so there aren’t any surprises! We here at Visia have some tips for you to best equip you prior to EOFY.

Call our office on (08) 6444 4154 to make an appointment to discuss your EOFY plan.

Superannuation Contributions

Australians can boost their super by adding contributions to their super fund and save tax too.

Concessional Contributions

You can make personal tax deductible contributions in addition to any compulsory super contributions (10% of your salary) your employer makes on your behalf, and this year’s contribution cap is $27,500.

If you have never owned a home in Australia, this is also a really tax-effective way of saving the deposit. Check out the ATO’s info on the First Home Super Saver Scheme.

Non-Concessional Contributions

If you have a spouse, there is a $3,000 spousal contribution option that could net you a $540 tax offset if they are earning under $40,000. That’s an 18% return on your contribution – easy money!

If your taxable income is below $42,016 and you make and personal superannuation contribution of $1,000 or more, the government will pay an additional $500 to your superannuation account, that’s a 50% return on your contribution. More easy money!

Income Protection Insurance

The only personally owned insurance the ATO stipulates that you can claim a deduction for, is the cost of premiums you pay for insurance against the loss of your employment income due to illness or injury.

This is known as Income Protection.

You must include any payment you receive under an income protection policy in your tax return.

You can’t claim a deduction, if the policy:

  • You take out is through your superannuation fund and the premiums is deducted from your contributions.
  • Pays you a capital sum to compensate you for injury.

Interest on investment loans

It’s always a good time to check loans to see if they qualify for the interest to be tax deductible and compare interest rates.

Loans used to acquire income paying assets such as shares, property and managed funds are eligible to claim the interest as a tax deduction. If you are unsure if you have an eligible loan, please call the office.​

Sell loss making assets to offset capital gains tax in the future

Market volatility is a good opportunity to sell underperforming assets and acquire new assets which have potential growth in value and income revenue.

Fund managers are actively buying and selling assets to meet their tactical asset allocation benchmarks. This activity may mean that capital gains tax may be payable on the income distributions or profits made from company takeovers.

We can check your portfolio to see if you are eligible to sell underperforming assets to offset capital gains tax in the future.​

Prepare for Franking Credit Refunds

​For our clients, Australian shares play an important role in wealth creation through growth in values and dividends including a refund of franking credits.

Whether you are a taxpayer or not, franking credits will be paid to your superannuation account to help reduce the 15% tax payable on contributions and income or as a tax refund to your personal bank account.

Ask us about your entitlement to franking credits to help build your wealth now and in retirement.

Small Business Tax Deductions and Incentives

Small business owners can claim 120% of the costs on external training to upskill staff from this financial year into the next financial year to 2024.

The federal budget also provided for free Beyond Blue mental health support for entrepreneurs.

Small business can also claim 120% of the costs spent on investment in technology such as cloud storage, e-invoicing, payment systems, web design and cyber security.

If you have any further questions regarding the EOFY, please get in touch with our office.

Book A Consultation

Book your complimentary discovery call with Kora Drage today.