Your End-of-Year Financial Checkup

TL;DR

With the start of June, it's crucial to prioritize financial planning and tax strategies, including superannuation contributions and meeting pension payment requirements.

Transcript

g'day and welcome to this week's video my name's robert goudie and we're at the start of June already we've really got to start thinking about our interview financial planning our tax planning to make sure we're taking advantage of the rules that are available for us so this video is probably the year last call start of June to get our house in ord... Read More

Key Insights

• 🚕 It is advisable to consult with an accountant to understand personal financial situations and optimize tax planning.
• ⛔ Salary sacrifice arrangements should be adjusted to stay within the applicable concessional contribution limits.
• 🤳 Timely contributions to superannuation are essential, especially for self-employed individuals.
• 🤳 Meeting minimum pension payment requirements is crucial for self-managed superannuation fund holders.
• ⛔ Non-concessional contribution limits will become stricter, requiring careful planning for contribution strategies.
• 🚖 Government co-contributions and special contributions provide opportunities for additional tax benefits.
• 🚕 Early tax planning in June is vital to make the most of available financial strategies.

Questions & Answers

Q: What are some considerations for farmers in terms of superannuation and tax planning?

Farmers should prioritize superannuation and farm management deposits, which can help with tax planning and financial management. Consulting with an accountant is recommended for personalized advice.

Q: What is the concessional contribution limit for individuals over 50, and how can it reduce taxable income?

Individuals over 50 can contribute up to $35,000 to their superannuation as concessional contributions, which lowers their taxable income. It is important to adjust salary sacrifice arrangements to stay within the $25,000 limit for the upcoming financial year.

Q: What should self-employed individuals keep in mind when contributing to superannuation?

Sending a check or making a transaction on the last day may not guarantee timely arrival in the superannuation fund. It is advisable to make contributions earlier to avoid any possible issues. Self-managed superannuation fund holders should ensure they meet minimum pension payment requirements.

Q: Are there any changes to non-concessional contribution limits and government co-contributions?

Non-concessional contribution limits will become stricter, decreasing from $180,000 to $100,000, and the bring forward rule will reduce from $540,000 to $300,000. The government still offers co-contributions of up to $500 for individuals earning less than approximately $36,000.

Summary & Key Takeaways

• It's important to meet with your accountant to discuss taxable income, including considerations for farming income and farm management deposits.

• Concessional contributions to reduce taxable income are capped at $35,000 for individuals over 50 and $30,000 for those under 50.

• Self-employed individuals should ensure timely contributions to superannuation and meet minimum pension payment requirements.