Tax Planning 2018 – Individual Taxpayers
The end of the 2018 financial year is fast approaching, so this is a great time to review your options to legally reduce the amount of tax you will pay this financial year.
The 2017 Federal Budget introduced a number of fantastic initiatives particularly as they relate to superannuation contributions, that we believe may be of benefit to you. We have therefore prepared a Tax Planning Guide to inform you of the new opportunities to save tax with super contributions – click here to view.
There is however a number of issues that need to be addressed, before you decide to to make any personal superannuation contributions including:
- There is a $25,000 concessional contribution cap, which includes any guaranteed contributions your employer put s in and any salary sacrificing you do.
- Personal contributions are only tax deductible if you ask your super fund to treat them that way. Therefore, there is paperwork to be done. We can help you with this.
- Anyone over 65 must meet certain conditions to contribute to super, namely the ‘work test’. The ‘work test’ involves working 40 hours in any 30 day period in the financial year in which you plan to contribute. You must be paid for that work.
- Claiming a tax deduction for your personal contributions means there may be tax payable on the way into your super fund.
Given the superannuation contribution rules are complex and unforgiving (ie when mistakes are made) and everyone’s circumstances are different, we believe it would be beneficial to meet with one of our accountants, to discuss your personal particulars and obtain the necessary information to provide you with a detailed tax plan , which will be discussed and implemented before the 30 June 2018 deadline.
Please contact our Manjimup office on 97771909 or our Pemberton office on 97761909 to make and appointment to discuss the preparation of your tax plan before its too late