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In this edition

Latest article in Western Sydney Business ACCESS
Continuing series of 'Improve your IQ'
Things to think about before the end of finacial year
Articles dedicated to Self Managed Super Funds
DIY Wills - what are the pitfalls?
April Tax Tips

Article brought by Melinda Garland

Melinda completed her Bachelor of Commerce (Property Economics)at the University of Western Sydney in 2000. She had 8 years experience in the real estate industry working as a Development Manager and Valuer of residential and commercial properties in Sydney and London. She has also had experience as a property Research Assistant and as an Assistant Commercial Property Manager.

Melinda worked as a Development Manager for a project management and property advisory firm call APP. She worked on various commercial, industrial and residential portfolios, additionally many one off property consulting assignments.

Melinda worked as a Senior Valuer with Herron Todd White undertaking residential valuations of a variety of residential properties for financial institutions such as AMP and St George. Prior to that she worked in London with Chesterton International valuing retail developments and residential properties. Her experience in Australia also includes valuing commercial properties for Chesterton International.

Melinda is happy she has made the move from the property industry and finds her knowledge obtained by being within the property industry is complimentary to the financial planning and insurance industry.

Melinda has completed the Diploma of Financial Services (Financial Planning) and is working as a Financial Adviser with our life insurance, superannuation and investment clients for Taggart Nominees Pty Ltd.

Melinda can help you with any questions regarding your life insurance, superannuation or investments, and you can contact Melinda on 02 9894 9155 [optoin 3] or email Melinda.

Contact details

Website
The Taggart Report
Phone
02 9894 9155
Fax
02 9894 8599
Email
Email us

Things to think about before the end of finacial year

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There are many matters to consider before the end of financial year whether it is as a business owner, or for your personal affairs.  Many of you will start to receive correspondence from your super funds talking about your options for super contributions and other matters that you can do before 30 June.  Some of those may be:

  • topping up your super whether it be for self employed people, for those of you who have already made personal contributions during the year, and for those of you who are looking to make a personal contribution before 30 June.
  • if you are a business with employees, making sure that you have met all of your employer super obligations for this financial year.

For some years now there have been superannuation contributions caps in place, and for the current financial year 11/12, the following contribution caps apply.  It is important to ensure that you don't exceed your super contributions caps.  If you do, you will be subject to an excess contributions tax assessment by the ATO.  Remember that if you are paying for a superannuation life insurance policy (from your own funds, through an SMSF etc), the premiums are treated as a concessional contribution and are included in the annual contributions cap.  Concessional contributions also include employer contributions made on behalf of an employee, and personal contributions for which the contributor is entitled to a tax deduction.

CONCESSIONAL CONTRIBUTIONS:

For people under age 50, the limit is $25,000 per person per year (indexed annually). For people age 50 or over, the limit is $50,000 per person per year (not indexed) until 30 June 2012.  From 1 July 2012, the Federal Government proposes to retain this higher $50,000 limit only for people age 50 or over with a total super balance below $500,000.

NON-CONCESSIONAL CONTRIBUTIONS

A limit of $150,000 per person per year applies.  Individuals under 65 can bring forward 2 years' worth of contributions for a $450,000 limit to apply over 3 years.  The non-concessional contribution limit is calculated as 6 times the under age 50 concessional contributions limit.

GOVERNMENT CO-CONTRIBUTION

From 1 July 2010, the matching rate was 100% for the superannuation co-contribution and the maximum co-contribution is $1,000 that is payable on an individual's eligible personal non-concessional superannuation contribution up to the threshold of $31,920, and reduces by 3.33 cents per dollar over that limit with nil co-contributions payable once the total income reaches $61,920.  The Federal Government has proposed that the maximum co-contribution be reduced to $500 from the 12/13 financial year (that is from 1 July 2012).

Other matters.

Other matters you might like to consider is the pre-payment of interest for which you might be entitled to a tax deduction.  This may include interest that you pay on margin loans and the like.  If you are paying for an income protection premium and are generally eligible for a tax deduction for the premium, you may consider paying the full years premium upfront before 30 June 2012.  Of course when you are looking at tax strategies such as these you need to speak to your accountant or taxation adviser to ensure that the strategy is suitable for you personally, or for your business.  Your accountant may be able to help you with suggestions for your business strategies that should be implemented or finalised before 30 June.

Now is the best time to start looking at your end of financial year strategies, as time will soon run out and not all matters can be quickly completed.  If you need help with any financial planning or insurance matters please contact our office.  For accounting advice you should refer to a duly qualified accounting expert.  Here's hoping for a happy end to this financial year.

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