According to accredited and authoritative sources, it has come to our understanding that tax and superannuation guidelines are going to undergo major changes. These changes are said to be the largest of its kind in the last decade.
It is advisable to contact your accountant or visit the official government websites for more details. This can enable you to start planning early to minimise any rude surprises later on. We have compiled a small list of highlighted changes. The changes are conditioned and will be held in effect from 1st July 2017.
A few steps for you to think about:
- It is not always the best situation around us to allow extra money to flow into the superannuation. However, it pays off to be aware of the possibilities of how the superannuation can be maximised while reducing tax.
- The non-tax deductible super contribution limit will decrease from $180,000 to $100,000 per year (provided your super balance is less than $1.6 million)
- Tax deductible super contribution limit decreases from $30,000 to $25,000.
- It is advisable to talk to your accountant about making effective contributions to your super before 30th June 2017.
- Another effective method of reducing your tax is by prepaying interest on investment assts. This can further allow us to get our tax refunded and then using those funds towards owning a protected share portfolio.
- Establish a Lineal Descent Will. Unlike traditional individual wills, which involve allocating gifts to individuals in your family these wills enable to make Bloodline trusts. This basically means that after your death, the nominated individual will control the Bloodline Trust.
- Some other common strategies to save tax are:
- Deposit for an Investment Property
- Take a holiday
- Upgrade your car and many more
To find out more about planning for these upcoming changes, please visit our contact us page.