Fewer than eight weeks till the end of the financial year
IT'S less than eight weeks to the end of the financial year - a signal that you should be taking action now to optimise your tax position.
I would certainly be maximising super contributions if that is appropriate for your situation, but keep in mind they must be in the bank by June 30 which this year falls on a Sunday. This makes the effective date Friday June 28.
If you're a high income earner, remember the government plans to tax contributions at 30% for people earning more than $300,000 a year, so if you're on the border of that figure, you may wish to take steps to stay under it. For example, if you are entitled to a bonus it may be possible to take it in the next financial year.
The figure is based on your ATI "adjustable taxable income" and when this is being worked out the tax office adds back any losses you have claimed on investment properties. Therefore, you can't reduce your ATI through negative gearing.
Account based pensions are only tax free once you reach your 60th birthday. If you're turning 60 between now and June 30, 2014, you may wish to take advice about deferring the start of your pension until your 60th birthday.
And if you're into real estate, you should certainly go to my website www.noelwhittaker.com.au and buy Winning Property Tax Strategies written by Julia Hartman and myself - it will certainly save you more than the tiny $29.95 it costs.