We will be providing one key strategy per week for the next 4 weeks coming up to the end of the financial year.

Remember it is always better to start preparing earlier as majority of these strategies will benefit from good planning.

The first week will discuss concessional contributions and what strategies can be implemented prior to 30 June.

A concessional contribution includes employer contributions, salary sacrifice or if your self-employed a contribution into super where a tax deduction is claimed. These types of contributions are taxed at 15% going into super, however are not included in your assessable income. Therefore anyone on the tax bracket 30% plus Medicare will significantly benefit from this strategy. The greater your marginal tax rate the greater the tax savings.

Where cash flow allows you should consider making additional contributions to super. The benefits include you pay reduce-taxless tax and increase your retirement wealth.

For the 2013/14 Financial Year the concessional contributions cap for anyone age 59 or over on 30 June last year is $35,000 and for the rest of us the cap is $25,000.

Being self-employed gives you a lot more flexibility in implementing this type of strategy as you can control your lump sum tax deductible contributions into super.

For employees, planning is very important. As an employee you can only salary sacrifice income as you earn. Therefore, you need to plan early and either start salary sacrificing into super or if you are already salary sacrificing increase the amount to take full advantage of the concessional contributions cap.

Next week – insurance strategies.

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Thomas Jacks BCom (Acc), SMSF SpecialistTM, Adv. Dip F.S. (FP)
“I want to be able to assist clients with their investment and retirement planning by providing real strategy advice. It’s my aim to not only help my clients but to educate them by addressing the entire picture” Google Plus

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