As the 2016 tax year comes to a close on 30 June, read our 5 top tips for getting your investment properties, tax & financial position in the best EOFY financial shape ever –
- Improve Investment Cashflow each week – implement a PAYG Withholding Variation (read more here) to receive your estimated 2017 tax refund throughout the year. Handy for those that want to use the extra $$ to help cover investment property outgoings or build equity in your personal home.
- Bring forward rental expenses – Pay property expenses issued before 30 June with a due date in July, now for an extra tax deduction this year. Consider also pre-paying loan interest if you have changing circumstances next financial year (e.g. maternity leave), you have taxable income over $180,000 or if you have received a large bonus this year. Talk to us & your bank about what options are available.
- Review your Loans – With so much change in the home & investor loan market and recent reductions in the RBA cash rate, it’s important you review your loans regularly to ensure you have the best deal. Finance broker John Stavrinoudis talks about why recent interest rate changes mean you may not be getting the best deal on your finance – read about it here
- Protect your Property – Protect your property from risks of damage from tenants, flood, fire or simply unpaid rent – its critical to your wealth accumulation plan. If you haven’t had a review of your property insurances by an independent & experienced insurance broker, then EOFY is a good time to ensure you are paying for the cover you need to stay protected. Call Renee Papastergou from MBJ Insurance Solutions on 1300 854 150 for assistance.
- Get Private Hospital Cover – Individuals with adjusted taxable income over $90,000 and couples & families over $180,000 combined income may be hit with an additional 1% tax if you do not hold Private Hospital insurance (not Extras cover). If you do not have it yet, and you want to reduce the effect of the surcharge organise insurance now. The policy must cover you & all your dependants and have an excess no higher than $500 (singles) and $1,000 (families).
- Update your Personal Insurances – When sickness or injury occur you want to ensure there is sufficient $$ to meet property investment outgoings, home loans & living costs. Will you need to sell properties to make ends meet if you are injured? Let us arrange a free review of your personal insurances by one of our network of trusted & qualified risk insurance brokers, email or call Karen Goad on 07 3849 3816 to find out what we need from you.
- Budget! Budget! Budget! – Make the most of those large tax refunds and create a budget that really works for you. Start with your goals – where do you want to go, what $$ do you want in retirement, when do you want to retire, do you want to travel – these are the decisions that will drive your budget. Learn how to create a budget that works in 5 simple steps from budgeting guru Matt Boxer.
End of Year tax return check-lists will be sent out in late June together with details on appointment times available in July-September tax season & other options for forwarding your tax information to our team.
If you have any questions about tax time or any other issue you would like to discuss, please call our team of Chartered Accountants on 07 3849 3816 or email.
The Disclaimer – The above tips are general in nature & have not taken into account your personal situation. Before taking action, please contact your Adviser & speak to us about your personal situation.