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As we approach 30 June it's important to take the time
to look at your situation and work out whether there are any financial planning
strategies or opportunities that are available to you,
to whether it be to maximise your taxation position
or help increase your future savings for retirement or whatever
other needs that you may have. It's important to look at things such as your
insurance.
Do you have the right types of insurance in place and do you have the
right level of coverage?
For example, has your situation changed so that you
now have children and you might need an increased level of coverage?
It's also important to consider whether those insurance policies are held
correctly.
Are they held through a superannuation fund where the premiums may be tax deductible?
Or do you hold them outside of superannuation where those premiums aren't tax
deductible.
The answer will differ for everyone. You need to look at your superannuation contributions.
There are limits on the amount of contributions that you can make to super
each year
and of particular importance are concessional contributions or pre-tax
contributions.
So that's superannuation guarantee that might be coming from your employer
or any salary sacrifice contributions that you've made.
And there's the limit of 25,000 of concessional contributions that can be made each year
that are subject to the concessional tax rate of 15 percent.
If your level of concessional contributions goes above that limit, you'll be hit with an
additional thirty one and a half percent tax.
So it's important to monitor where you are now and how much room you have to move
in the lead up to 30 June.
Also, is it an important time for you to reconsider
getting back into the investment market, investing into shares or other types of
assets.
Should you do that through your own name, or should you do that through super?
And where appropriate should you look to prepay that interest for the next 12
months
and bring forward that tax deduction to this year to help manage your tax affairs.
To determine whether these or any other strategies are appropriate for
your particular situation,
speak to your Westpac financial planner.