30 June is just around the corner – is there anything you should prepay?
Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 18 June 2021. This week’s topic: What can you prepay before 30 June?
Luke and Leon however start the show by talking about the legislative changes that occurred this week. As Luke wisely points out, don’t think that ‘stapled’ to your super fund means that you’re stuck with your super fund forever. This legislation doesn’t mean that you no longer have super choice. What it does do though is that your super fund will travel with you when you change jobs. This is particularly important for young workers who change jobs often and generally don’t pay much attention to super. Importantly if you want to switch super funds, you still can.
Key highlights include:
- 30 June is fast approaching – how well prepared are you?
- Did you know you might be able to prepay and expense for next year, but claim at tax deduction for it this financial year?
- Be sure you speak to your tax accountant or trusted adviser to ensure the item you prepay is tax deductible
- You can prepay things like interest on an investment margin loan
- Business expenses should also be considered if you run a business
- Income protection can also be prepaid and it’s an expense that is generally tax deductible against your personal income
- Don’t just think about the tax deduction, there could be other financial situations to consider, such as if you’re approaching retirement
- What will happen over the next 12 months ,is there a benefit to doing something now?
- Offset home loan accounts might be beneficial to help make you make a deductible super contribution this year
- Think about carry forward contributions in super that you can claim as a tax deduction too
- If you’re a business owner, talk to your accountant proactively to see how they can help you manage 30 June issues
- Think about what you want to do now – don’t leave it too late to act
- Luke shares his key strategy points for making the most of the end of financial year – but time is running out
- Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice around your financial plan?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. The legislation and strategy can be complicated but the good news is you can make an appointment to speak with Luke about your specific situation, goals and options. Luke can also refer you to an accountant at no cost.
Make an appointment to confidentially discuss super, investment, insurance or retirement. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Luke will return to talk about financial planning on 2CC next Friday. You can also catch up with The Strategy Stacker – Luke Talks Money podcast. We look forward to your company again.