You’re probably more than aware that then End of Financial year is just around the corner, but did you know that now is the best time to get on top of your finances and have a chat to your financial planner? Don’t leave it until it’s too late. Here are some things we recommend you talk to your financial planner or accountant about before June 30.
Putting more money into your super account
Now could be the perfect time to add some extra money into your super account and reduce your taxable income at the same time, provided you haven’t already reached your contributions cap for this year. Not sure what this could mean in the future with the potential changes to the Super cap that were announced in the budget? Take a read of what we think in our blog post about the 2016/17 budget.
Check your retirement plan
It is particularly important to check your retirement plan if you are nearing, or over, the age of 55. As you near retirement age, there are a number of issues you will need to consider. All of these are influenced by whether or not you are still working:
- If you are planning to retire in the near future, you should be looking into how you will be taxed on your super benefits.
- If you are looking to reduce how much time you spend working, you should be talking to your financial planner about ways that will allow you to transition into retirement while maintaining the same, or similar level of income.
- If you have already retired, there are a number of tax concessions or tax offsets that you could be eligible for.
There are also a number of special rules and tax concessions available for individuals who are planning to sell their business assets or if you are likely to receive payments from your employer for either early retirement, employment termination or redundancy.
Protect your income
Taking out income protection insurance is extremely important as it may allow you to claim up to 80% of your current monthly income if you are unable to work at your full capacity due to injury or sickness. It can also help cover mortgage repayments while you recover. If you take out cover before the end of financial year, you may be able to bring forward a tax deduction into this year. Talk to your financial planner to see what the best course of action would be for you.