End of Financial Year: Tax Time Tips
At this time of year, we like to remind you to think about important planning opportunities before the end of the financial year. This includes making additional superannuation contributions, reviewing your capital gains or losses, and ensuring minimum pension drawings are taken.
Super contributions
If you are considering making a superannuation contribution before the end of the financial year, you should do so as soon as possible. This year 30 June is a Sunday, so the processing systems of many super funds mean the final submission dates are often significantly earlier than this.
We recommend aiming to make any contributions before Friday 14 June to ensure you don't miss out.
This year’s general concessional contribution limit is $27,500 (including any employer contributions) and this is due to increase next financial year.
For more information about contribution limits and the tax changes occurring over 2024/25, see the video below where FMD Adviser Aakash Mehta and CEO Lee Wapling discuss what’s happening with changes to super contribution caps and where the traps and opportunities may lie:
Distributions and cash position
If you have investments in managed funds, 30 June is when you see your main income payment for the year, and that is paid in July and early August.
You can then consider whether you reinvest that cash or whether you need to set it aside for any personal income needs.
Note, you may see a drop in value in your account during this period in July while the price of the managed fund drops by the distribution amount, and the distribution is pending payment into your account.
As a reminder, if you think you'll need extra income in July, you may want to consider selling investments before 30 June because these managed funds can be inaccessible while they work out their exact income payments.
We're here to help
To consider the best options for you or if you think your situation needs particular attention, we are here to help in any way we can, so please feel free to call your adviser to discuss your situation at any time.
And if there’s someone you know who might need extra assistance at this time of year, share this article or encourage them to visit www.fmd.com.au where they can arrange to Talk to An Adviser.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.