Essential checklist for the end of financial year

The end of financial year on 30 June is a good time to take stock and get your finances in order.

Have you worked from home this year? The government has released guidance on claiming working from home expenses as a tax deduction. Due to COVID-19, the ATO will accept a shortcut method for calculating expenses from 1 March to 30 June.

Super contributions. To claim a tax deduction on your post tax contributions, you need to tell your super fund by filling in a notice of intent. If you’re earning more than your partner and would like to top up their super you can make a spousal contribution and be eligible for a tax break. You and/or your partner may also be eligible to receive a government co-contribution.

Are you at or near retirement? Changes this financial year include: minimum pension drawdown cut by 50%. If you’ve recently retired you may be able to make voluntary super contributions and potentially claim a tax deduction. This is also the first year that those who are eligible can use unused carried forward concession cap amounts from the previous financial year.

Need to access your super? Applications for early release of super up to $10,000 must be made by 30 June. Second application available between 1 July and 24 September.

Have income protection insurance? You may consider pre-paying your premiums 12 months in advance to claim a bigger tax deduction this year.

Instant Asset Write-0ff. Thinking of buying a new car, equipment or machinery? Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset.  From 12 March – 30 June threshold amount for each asset is $150,000 (up from $30,000). Make sure you speak with your accountant first.

Review your professional team. There is no doubt that you will achieve better results with the right team around you. 1. Financial Adviser 2. Accountant 3. Bookkeeper and Finance Broker.

To discuss your situation and how you may benefit from these strategies, please feel welcome to get in touch.

Lane Financial