End of Financial Year Tax Tips – 30 June

The end of the financial year is almost here.  If you haven’t planned how you will maximise your tax return and save some tax, take note of these top tax tips.  Here are some tax saving strategies which you may like to consider:

  1. Defer non-essential income until the new financial year.  As an example, this could mean rolling a term deposit so that the interest is paid next financial year instead of this year.
  2. Review your investment portfolio to determine whether investments should be sold to offset any capital gains or losses made throughout the financial year
  3. Make sure you get Capital Gains Tax Concessions by holding on to assets for more than 12 months
  4. Maximise tax deductions through super contributions.  Alternatively, make a contribution into super for your spouse – this could provide you with a tax offset.
  5. Borrow to invest through home equity loans, margin lending, or protected equity loans and pre-pay the interest.
  6. Review income distributions through family trusts.  You can lose franking credits in some circumstances if a family trust election is not made.
  7. Sort through your receipts and make sure your records are up to date.
  8. Make a non-deductible contribution to super to receive the Government Superannuation Co-contribution.  You may particularly like to consider this if you are a low income earner.

Take care with “tax effective” investments

As the end of the financial year approaches, tax is on a lot of peoples’ minds.  As a result, there is often an increase in product marketing for tax effective investments at this time of year.  The golden rule when considering any investment is to focus on the quality and prospects of the assets and to treat any possibly tax advantage as an added bonus.  Tax deductions aren’t everything.  Remember that over time a good investment will be much more valuable than a tax break.

For more great tax saving tips, download our free Tax Strategies Ebook available from the Financial Spectrum website.



2 Responses to “Tax Saving Tips for End of Financial Year 30 June”

  1. Mark June 18, 2010 at 6:03 pm #

    Thank you for this tax article. I particularly like your idea about how people focus too much on tax effective investments and tax savings as the bee all and end all. I know a lot of people who just want to save on tax and end up in investing in things that they shouldn’t and that don’t perform well solely because that investment gave them a tax break… at the end of the day if an investment is a good one it will be much better than a bad investment that has tax advantages.

    Thanks again for the great information. Keep up the good work.


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