Budgeting and tax planning might sound like something just for businesses, but getting advice before 30 June is important for individuals too, especially if you’re earning higher wages. Here are four things you should be asking your accountant and/or financial adviser.
- Salary Packaging – One of the main benefits of salary packaging is that it may allow you to reduce the amount of tax you have to pay. This means you receive a greater overall benefit from your employment, as the amount you save in tax, you receive in non-cash benefits. Superannuation contributions, laptops and portable computers are some examples of how salary packaging allows you to structure your income in a more effective way. Remember some other benefits could be subject to fringe benefits tax.
- Income Protection – Is something everyone should have, it’s not just for high income earners. This type of insurance provides you with a monthly payment if you are unable to work due to illness or injury and the premiums are tax deductible.
- Investment Planning – Making sure your tax planning, superannuation and investments work together to give you the best possible deductions and benefits is important. Prepaying 12 months interest on loans for shares or investment properties can also work in with your tax planning. But remember, don’t just buy or invest in something for the tax deduction.
- Budgeting – Everyone can benefit from having a budget. The purpose of a budget is not to make you go without or to force you to save. It simply allows you to manage your money in a more controlled and effective way and to understand where you are spending your money.
Obviously all of these strategies depend on each individual’s situation, which is why we recommend that you seek advice and speak with your accountant as to what suits your situation.
This document provides general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. This information does not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances.