It’s that time of the year again, the End of Financial Year in Australia, and here we’ve shared our top tips as an EOFY Checklist for Aussie Expats.
Repairs and Maintenance
If you’re been putting off making repairs on your property, you may want to get onto this right away. By making repairs this financial year, you can make the deduction in this financial year.
If you have an investment property, you may want to consider pre-paying up to 12 months of interest payments and claim the full deduction in this financial year. In order to pre-pay interest, speak to an investment-savvy mortgage broker and ensure that you’re locking in a reasonable rate for such a strategy.
Review your Interest Rates
When was the last time you reviewed your interest rates and property loan details. It is sensible to review this on a regular basis and ensure that it remains the right option for you.
Will your partner earn less than $13,800 this financial year? If so, did you know that you could contribute up to $3,000 into his/her super fund and claim a tax offset of 18%. That’s a remarkable return on investment and shouldn’t be overlooked.
Salary Sacrifice into Superannuation
If you’re just about to receive your bonus or other salary payment, consider salary sacrificing it into your superannuation portfolio to claim the deduction in this financial year. This can be particularly valuable if your income this year is likely to be higher than next, and could result in a saving of 34%, when comparing the superannuation contribution tax rate and top marginal tax rate.
If you’ve under $35,454 this financial year, you may want to consider making a contribution to your super fund. Here’s how it works – for every after tax dollar you contribute to your superannuation fund, the government will match it with a $0.50 co-contribution. Please note that this co-contribution is capped at $500.
While not necessarily a tax-saving tip, this can be an ideal time to review your personal balance sheet. What does your overall asset allocation strategy look like? Is it aligned to your risk profile? We recommend reviewing your overall asset allocation strategy on a regular basis and continue to rebalance to ensure you remain on track to achieve your financial goals.
If you’re looking at taking time off in the new financial year for maternity leave, or simply just looking to reduce your working hours, perhaps you should consider looking to defer some of your income to the new financial year. This should shift your income into a lower tax bracket and increase your ‘take-home pay’.
With less than a week left in this financial year, be sure to act quickly to ensure you don’t miss out on potential tax savings.
To your financial success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3
Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified, allowing us to provide specialist advice to Australians living abroad.
To learn more about how we may be able to help you, please contact us:
✆ +65 8282 5702
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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.