Author: Andrew Blunden
With the end of financial year approaching, it is time for business owners to review their financial situation as the tax planning season gets into full swing.
Some of the issues you should consider with your accountant or financial planner would include:
Tax File Number: make sure your superannuation fund has your TFN. If it doesn’t, contributions could be taxed at the top marginal rate, rather than 15%.
Superannuation: consider topping up your retirement account. Contribution limits are set annually, so if you are planning to maximise your contributions this financial year, you will need to make the contribution before 30 June.
Share Portfolio: look at your investment portfolio to see if it is worth selling underperforming shares to crystallise a capital loss. But be careful, the Australian Taxation Office is looking out for investors who are simply looking to exploit the concession by immediately buying the asset back again. It has to be a genuine attempt to dispose of the poorly performing shares or investments.
Co-Contribution: this is a scheme where the government will co-contribute into low income earners’ superannuation. Talk to your accountant or advisor about your eligibility.
But always be warned – the end of financial year sees thousands of taxpayers and business owners investing in what are purported to be tax-effective investment projects. Before you are tempted to invest in one of these, it is essential that you do some thorough research – and always get good professional advice. As the national manager of advice development with ipac Securities’ John Dani says: “No amount of tax deduction can make up for a poor investment.”
Pittwater Business Limited is a not-for-profit independent business association formed to support the growth and development of sustainable and successful businesses in Pittwater. Pittwater Business helps local businesses through networking events, presentations and newsletters. For more information or details about how to become a member of Pittwater Business, phone (02) 9907 0780 or visit our website www.pittwaterbusiness.com.au.
Andrew Blunden CA is a Director of Pittwater Business Limited and Managing Director of Part Time Professionals (www.ptprofessionals.com.au).
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