By Peter Kelly on Jun 25, 2019 10:00:00 AM
This year, the last day of the financial year will be next Sunday. Just how quickly has the last year gone?
Some of the notable events of the year included:
- Malcolm Turnbull replaced by Scott Morrison as Prime Minister
- A Royal Commission into Aged Care Quality and Safety was announced
- ALP returned for a second term in the Victorian State Election
- Tabling of the final report of the Banking, Superannuation and Financial Services Royal Commission
- LNP returned to government following the NSW State Election
- Federal Budget was brought forward to April 2019
- Federal Election saw the unexpected return of the Coalition to Government
- New education requirements for financial advisers commenced.
So, as we head towards the end of June 2019, what are some of the things we need to be thinking of?
- Superannuation – this week will be the last opportunity to make contributions to super in 2018-19, particularly if looking to:
- Receive the Government co-contribution
- Claim a tax deduction for personal contributions
- Take advantage of the Low-Income Superannuation Tax Offset
- Making contributions for a spouse in order to receive the spouse superannuation tax offset
- SMSF using a contribution reserving strategy – if planning to make double concessional contributions to a SMSF this month, ensure all the correct paperwork is in place to avoid creating an excess concessional contribution.
- Life insurance – those readers that hold life insurance through their super may find that, commencing 1 July 2019, your insurance may be cancelled if your fund has not received a contribution or rollover in the past 16 months, or an election has not been made to retain the insurance cover.
- Splitting super contributions – up to 85% of concessional contribution may be split with an eligible spouse. This week is the last opportunity to request a split of contributions made in the 2017-18 financial year.
- Pensions – if receiving a pension from a super fund, and particularly from a self-managed super fund, check to ensure the prescribed minimum income has been paid for the 2018-19 financial year. Failing to make the minimum pension payments may have undesirable tax consequences.
- Tax deductions – if planning to claim a tax deduction for post and pre-paid expenses, ensure payments have been made and supporting documents such as receipts and statements are retained to support the claims.
As one financial year draws to a close, it is also an appropriate time to snuggle up out of the cold and review our expenses over the past year. This can be particularly useful when preparing our household budget for the next financial year. Look for opportunities to save money and make 2019-20 the financial year the year for eliminating short-term debts like credit cards, buy now-pay later arrangements, personal loans, and the like.
What is your financial objective for the next financial year?
Feel free to leave a comment.