Save
Five ways to build your wealth before 30 June
While many investors are planning for the 2019-20 financial year, People’s Choice believe there’s a few boxes to tick this year before moving on to the next.
Five ways to build your wealth before 30 June
While many investors are planning for the 2019-20 financial year, People’s Choice believe there’s a few boxes to tick this year before moving on to the next.
In doing so, investors will be able to get the maximum tax return for this financial year. With this, People’s Choice has outlined five factors that can help build your wealth.
1) The government
For part-time and casual workers, now is the perfect time to be looking into superannuation, according to People’s Choice senior financial planner Sally Kolbig.
“Part-time or casual workers can look to the federal government to help build their wealth,” said Ms Kolbig.
“If you earned less than $37,697 during the past financial year and make a $1,000 contribution into your superannuation fund, the government will add another $500 to your super. In fact, you can earn up to $52,697 and still receive some money from the government to lay the groundwork for a stronger investment,” continued Ms Kolbig.
2) Reap the rewards with super
Salary sacrificing can be an effective way to not only build your wealth but reduce the tax bill.
“If the total amount of compulsory employer superannuation contributions and any salary sacrifices to your superannuation fund are less than $25,000 for the year, you may be able to add a little extra and cut your tax,” said Ms Kolbig.
3) Take advantage of spousals income
If one spouse is on a low income, there are tax offsets that can be taken advantage of.
“If your spouse’s total income is less than $37,000, you can make a $3,000 contribution to their superannuation account and receive a $540 in tax offset,” Ms Kolbig said. “It’s a simple action that can make a difference in the final two weeks of the financial year.”
4) When losses become a gain
While investors rarely enjoy losing money during tax time, it can actually be an advantage. This is because investors can write off losses.
“Sometimes it may be better to accept the loss, and now is the time to make that decision. If you sell any loss-incurring assets such as shares in the coming weeks, you can offset those losses against your tax liability for gains on other assets you may have sold,” said Ms Kolbig.
5) Plan ahead and save
If you’re likely to have a larger bill in current financial year than the next financial year, it can be tactical to pre-plan expenses.
“If you have income protection insurance, consider paying next year’s premium before 30 June. You may get a kick out of ticking it off your to-do list, but you also get to claim a tax deduction on this year’s return,” Ms Kolbig said. “It’s a simple strategy that can yield some quick results.”
RELATED ARTICLES
About the author
About the author
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more
Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more
Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.