Personal Tax Planning Tips #3

Posted on Jun 7, 2012 | 0 comments

Here’s the third blog in our series of Personal Tax Planning Tips. Remember – act now and don’t wait until it’s too late!

7. Protect Your Income

Possibly your greatest asset is your ability to earn an income. Income protection insurance replaces up to 75% of your salary if you are unable to work due to sickness or an accident. The insurance premium is tax deductible.

8. Realise Capital Losses

Tax is normally payable on any capital gains. You should consider selling any non-performing investments you hold before 30 June to crystallise a capital loss and reduce or even eliminate any potential capital gains tax liability. Unused capital losses can be carried forward to offset future capital gains.

9. Qualify for a Government Co-Contribution

If your total income is less than $61,920, you may be eligible for a super co-contribution from the Federal Government. For each dollar in personal after-tax super contributions, the Government will contribute from $1 up to a maximum co-contribution of $1,000 for those earning less than $31,920. For the purposes of this test, income is taxable income plus reportable fringe benefits and salary sacrificed super contributions and personal deductible super contributions.

 

Talk to us TODAY before the 30 June 2012 deadline for assistance to reduce your tax!

Phone 07 5585 8555 for more information.

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