Salary Sacrifice remaining income this Financial Year. If you have earned more than $37,000 year to date and you have sufficient funds to live on in June, consider salary sacrificing your income for this month into Super. You will pay tax at 15% as opposed to your marginal tax rate. But be careful of the contribution caps. If you are over 55 you can access a portion of these funds in July utilising a Transition to Retirement Allocated Pension Strategy.
Concessional Superannuation Contribution Cap Changes from 1 July. If you over 50 or turning 50 this Financial Year, this is your last opportunity to contribute at the higher Contribution Cap of $50,000. From 1 July the cap reverts to $25,000.
Maximise Super Contributions if earning over $300,000. With the imposition of a 30% Superannuation Contributions tax for those earning over $300,000 from 1 July, try to maximise contributions into Super this financial year and pay only 15% tax.
Government Superannuation Co-Contribution to halve and upper income threshold cut. If you earn less than $31,920 and make a personal non-concessional Superannuation contribution, the government will match $1 for $1 contributions up to $1,000. From 1 July the matching will halve to a maximum of $500. If your income is less than $61,920 you receive a pro rata partial co-contibution. From 1 July those earning over $46,920 will no longer be eligible for any payment.
Restrictions on Superannuation Contributions if turning 65 this Financial Year? Prior to 65 you can invest money into Superannuation without satisfying a work test requirement. From age 65, you are required to have worked for at least 40 hours in a 30 day period prior to making a Super contribution.
If under age 65 you can also contribute up to $450,000 as a personal non-concessional Superannuation contribution. After age 65, you are restricted to $150,000 each Financial Year.
Pre Pay 12 months interest on investment loans and bring forward expenses to claim the tax benefits this Financial year.
Crystallise Capital Gains and losses and transition assets into Superannuation. If you own Shares in your own name that you wish to move into Superannuation, look to crystallise the gains or losses now. The value will count against your Non-Concessional Superannuation contribution Cap of $150,000 on transfer. With share prices generally lower, it provides an opportunity to move more shares into your fund. Capital Gains inside Superannuation are taxed at 10% or 0% if in Pension mode.
Pre Pay Private Health Insurance Premium. From 1 July , the Federal Government will incomes test the Private Health Insurance Rebate. If you are single and earn over $84,000 or $168,000 as a couple, you will lose your rebate or have it substantially reduced. Private Health Fund will allow pre-payment of premiums for up to 12 months. (some up to 18 months) So pre pay premiums prior to 30 June. The saving could be up to 30% of your premiums.
Medical Expense Rebate. From 1 July the medical expenses rebate which allow you to claim 20% of your out of pocket medical expenses above $2,060 will be means tested on the same basis as Private Health Insurance. From 1 July if you exceed the income threshold, you will only become eligible for a rebate on medical expenses above $5,000 and capped at 10%. Consider stocking up on you prescriptions and bring forward any medical treatment prior to 30 June.
Payments must be received by 30 June to be valid in the financial year. A big warning, the ATO recognizes Super Contributions or expenses when they are received by the institution (Tr2010/1) not when they are made by the payer. Bpay or EFT must be received by an institution on or before 30 June to be recognized within the financial year.
Time is ticking, so give your self time to make the most of these opportunities.