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Published 5 June 2018

With the end of the financial year approaching, it’s a great time to make smart decisions about your finances. Taking action before 30 June can open up more opportunities for you. We know that there isn’t a one-size-fits-all solution to accounting, wealth management and business growth. So we’ve outlined some tax-effective strategies that you may benefit from. We can help you find what strategies are right for you and/or your business.

For Individuals

Smart Superannuation Strategies

Seven super strategies that may help reduce your tax liability whilst building your super savings for your retirement.

If you… You may want to…  So you can…
1. Get more from your salary or bonus Are an employee. Sacrifice your pre-tax salary or bonus into super rather than receive it as cash. – reduce tax on your salary or bonus by up to 34%
– take advantage of the contribution cap that applies in this financial year
2. Make tax deductible super contributions Earn less than 10% of your income2 from eligible employment (e.g. you are self-employed or not employed). Invest in super by making concessional contributions. – claim your contribution as a tax deduction- take advantage of the contribution cap that applies in this financial year
3. Make after-tax contributions
to super
Have an investment in your own name. Cash out the investment and use the money to make a personal after-tax super contribution1. – reduce tax on investment earnings by up to 34%
– increase your retirement savings
4. Use super to manage Capital
Gains Tax 
Make a capital gain on the sale  of an asset this financial year and  earn less than 10% of your income2 from eligible employment. Invest the sale proceeds in super. – claim a portion of the contribution as a tax deduction
– increase your retirement savings
5. Get a super top up from the Government Earn less than $51,0202 pa, of which at least 10% is from employment or a business. Make a personal after-tax super contribution. – qualify for a Government co-contribution of up to $500
– increase your retirement savings
6. Boost your partner’s super and
reduce your tax
Have a spouse who earns less than $13,8002 pa. Make an after-tax super contribution on their behalf. – receive a tax offset of up to $540
– increase your spouse’s retirement savings
7. Convert downsizing your
home sale funds into a super boost
Are an Australian homeowner aged 65 years and older Contribute up to $300,000 as a non-concessional (after-tax) contribution from the sale of your home to your superannuation – pay no tax on investment earnings
– increase your retirement savings

Smart Insurance Strategies

Two insurance strategies that may help you benefit from tax concessions this financial year.

If you… You may want to…  So you can…
1. Buy insurance in super tax-effectively – Are eligible to make salary sacrifice contributions, or
– Are eligible to receive Government co-contributions, or
– >Have a spouse who earns less than
$13,8002 pa, or
– Earn less than 10% of your income2 from eligible employment
– Purchase life and total and permanent disability insurance through a super fund
– Make concessional contributions to your super fund
– Benefit from tax concessions
– Make premiums more affordable
2. Pre-pay income protection premiums and reduce this year’s tax Are employed or self-employed Pre-pay 12 months’ income protection insurance premiums – Claim your tax deduction upfront
– Pay less income tax this financial year

Smart Investment Strategies

Four investment strategies that may help you improve your tax liability this financial year.

If you… You may want to …  So you can …
1. Offset a capital loss against a capital gain Have received capital losses from your investments. Utilise the capital losses against any capital gains. – Manage your tax on investments more efficiently
2. Defer asset sales Are thinking of selling a profitable asset this financial year. Defer the sale until a future financial year. – Manage your cashflow more efficiently
3. Pre-pay investment loan  Have (or are considering establishing) a geared investment portfolio. Pre-pay 12 months’ interest on your investment loan. – Manage your cashflow more efficiently
– Potentially pay less income tax this financial year
4. Make better use of your tax refund Receive a tax refund. Use your refund to:
– Pay off non-deductable debts first
– Pay off your home loan and then borrow to invest
– Fund your daily living expenses and contribute your pre-tax salary into super
– Save on interest
– Invest your refund outside of super
– Boost your super tax effectively

Some of these strategies are best implemented prior to the end of financial year, speak to RJS Wealth Management today on 1300 27 28 29 or:

Book an appointment! Email:info@rjswm.com.au

1 It’s important to check for CGT implications before cashing out any investments.
Includes assessable income reportable fringe benefits and reportable super contributions. Other eligibility conditions apply. 

This blog has been prepared by RJS Wealth Management Pty. Ltd. ABN 24 156 207 126. RJS Wealth Management Pty. Ltd. is a Corporate Authorised Representative (No. 438158) of Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licensee (Number 233209). The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this fact sheet can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.