Act now or miss out

The end of the financial year is on us and it’s time to look at our finances, writes Anthony Keane

WHEN the calendar ticks over to July next weekend, many end-of-financial-year opportunities to cash in will disappear.

“For a lot of people the end of the financial year is a good line in the sand to say ‘we need to look at our finances’,” said MBA Financial Strategists director Darren James.

“Let’s make sure we are doing everything we can to maximise our position.”

Here’s what not to forget. INVESTORS

Property investors can spend money on maintenance and prepay interest or landlords insurance to claim a quick deduction. However, travelrelated deductions are no longer claimable.

Share investors can prepay interest on margin loans, and potentially sell losing shares to offset capital gains tax elsewhere. Investors selling shares for a capital gain should wait until July 1 if they can. EMPLOYEES Whether home office, car or uniform expenses, subscriptions or donations to charities, spend up this week to bring forward tax deductions.

Some people failed to claim their income protection insurance, Mr James added. If your policy is held outside of super, prepaying a year’s premiums can deliver a handy tax deduction. SUPERANNUATION

All employees can now make tax-deductible contributions to super, and there are generous incentives such as the $500 government co-contribution for low and middle income earners and a tax offset of up to $540 if you put money into the super of a spouse earning below $40,000. But be quick.

NGS Super acting CEO Laura Wright said people should check their super fund’s for cut-off times because voluntary contributions needed time to be processed.

“You’ll probably need to make any voluntary contribution a few days earlier than 29 June if you’re using internet banking via BPAY,” she said. RETIREES

Dixon Advisory managing director Nerida Cole said selffunded retirees should make sure their minimum pension payment was taken from their retirement pension account before June 30.

“Not taking the minimum means your retirement pension will lose the tax-free status and instead pay 15 per cent tax on earnings,” she said. FIRST HOME BUYERS

“First home buyers who maximise the contribution under the First Home Super Saver Scheme before 30 June and again in July, can get around $5000 in tax benefits – or $10,000 as a couple – to help with the deposit on their first home,” Ms Cole said.

People should also check bank account balances before transferring large sums, to avoid fees or missed deadlines.