Published on June 6, 2019. Published by RJS Wealth Management Pty Ltd.
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.
Prepaying income protection premiums for immediate tax benefits
Income protection insurance is an important form of cover.
This type of insurance pays out if income is unable to be earned as the result of injury, illness or disability.
Some policies can also include cover for redundancy and other involuntary unemployment.
How does pre-paying for tax purpose work?
The premiums paid on income protection insurance are often tax-deductible if held outside of superannuation.
Income protection insurance policies held through super funds may also be tax-deductible for those self-employed.
Pre-paying a number of premiums in advance can increase the deductible amount claimable.
Prepay investment debt and claim payments this financial year.