Getting into the habit of reviewing your financial requirement at the beginning of a new financial year makes sense. This will help to maximise investment returns and financial situations rather than reacting to minimising tax when time is running out. Here are some points to consider for the new financial year to help you along.

  • If you haven’t already, start gathering your information for your 2012/2013 tax return.
    • If you or your SMSF are entitled to a tax refund, get it done earlier and use your refund to work for you and not the ATO. 
  • Review concessional contributions to super to ensure you are within the annual caps.
  • Maximum is $25,000 while those over 59 on 30th June 2013 can sacrifice up to $35,000.
    • Next year this will increase to $35,000 for those over 49 years of age as at 30th June 2014.
  • Be mindful that employer SG contributions have risen to 9.25% from 1st July 2013 to ensure your total Concessional contributions do not exceed your caps.
  • Adjust any pension drawdowns to meet the minimum or maximum requirements if applicable.
    • Check your minimum pension against the minimum percentage factors applicable to your age at 1/7/13.
    • Be mindful that maximum income limit for transition-to-retirement pensions is 10% of 1st July account balance. 
  • Review transition-to-retirement pensions to check out if it is worth combining your accumulated contributions from past years with your current pension.
  • Check your risk profile and strategic asset allocation to ensure you have the capacity to deal with any volatile returns from your assets.
  • For SMSF, document any changes and keep on file with your documents.
  • Investigate modelling and calculating your financial circumstances to ascertain what you may have in retirement or if savings are sufficient (i.e. school fees, new home, etc.)

For your reference you can download our handy Tax Matters brochure by clickinghere.

For assistance with any of these items, please contact your adviser at WLM.