EOFY – Personal End of Financial Year checklist!
Time is moving – End of Financial Year (EOFY) approaches, it’s time to use a checklist to have a review and ensure all is in order and all ACTIONs taken by 30 June deadline, as well as collecting the papers and documenting all transactions during the year for good records.
Here is a personal checklist for end of year steps to consider –
- Super Fund Contributions cut-off dates – some large commercial super funds are requiring contributions by June 20-24th. This is to allow processing time with the busy end of year period – act fast if you want to claim super by 30 June!
- Contribution Caps
The concessional contribution (tax deductible / employer) cap from 1 July 2017 is $25,000 for ALL individuals, regardless of age (earlier years were higher). Take care – if you have more than one fund, ALL concessional contributions made to ALL your funds are added together and counted towards the cap. MORE HERE
- Claim Tax Deductions for Personal Contributions (Non-Concessional)
- If you are claiming a tax deduction for your superannuation contributions, make sure you are eligible to claim the tax deduction – seek advice if you’re unsure. An error in over-contributing or claiming a tax deduction for personal superannuation contributions could have excess tax consequences.
- Minimum Pension taken
If there are members in the pension phase, ensure they have received the required minimum pension amount by 30 June. Failure can result in the investment income derived from your assets supporting that pension no longer being exempt from tax and other penalties could apply. MORE HERE
- Claim Tax Deductions for Personal Contributions (also called Non-Concessional)
If you are claiming a tax deduction for your superannuation contributions, make sure you are eligible to claim the tax deduction – seek advice if you’re unsure. An error in over-contributing or claiming a tax deduction for personal superannuation contributions could have excess-tax consequences.
- Government Co-Contribution
Remember to take advantage of the Government co-contribution by making a non-concessional (after tax) super contribution before the end of the financial year. For every dollar of eligible contributions, the Government currently contributes 50 cents to your superannuation up to a maximum government co-contribution of $500. It is income-dependent and drops on a sliding scale, so check the latest with the ATO site. See Co-Contribution
- Self-Employed? Pay April-June quarter super early if in good profits
If you have a business or company and you are making good profit, discuss with your advisor or tax agent – it may help to pay the quarterly (or monthly) super BEFORE June 30 to get the full tax deduction to reduce profit.
- Boost your partner’s super
If your partner earns under $40,000, you can contribute some of your after-tax (savings) up to $3000 to their super fund. You in return get a $540 tax offset against your tax.
- Selling a small business – reduce Capital Gains by contributing some to super
If you are selling your small business (subject to current limits and criteria) seek advice whether there is a chance some of the proceeds could be contributed to your super – it may save some Capital gains tax with the small business capital gain concessions.
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