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Hewison Private Wealth - Insights
Hewison Insights

EOFY Update

Chris Morcom
Partner/Private Client Adviser
11 Jun 2013

It’s that time of year when we need to review our financial affairs to ensure all is in order before 30 June.  It is also a good time to have a look at what your plans are for the next financial year.

So, what do you need to do  before 30 June?

  • Make sure you have maximised your superannuation contributions.  The contribution limit for Concessional (employer, salary sacrifice, or personally deductible) contributions this year is $25,000, make sure you don’t exceed the limit!
  • Have you turned 65 this year and have assets or cash you want to put into super?  You had better get this done by 30 June if you are retired, as once you’re over 65 and no longer working you cannot contribute to superannuation.  Take care not to exceed the Non-Concessional Contribution cap of $150,000.
  • If you are making Non-Concessional Contributions, take care you have not triggered the “bring forward” rule in previous financial years.  If you made Non-Concessional contributions in excess of $150,000 in either the 2011/12 or 2010/11 financial years then you could be restricted in how much you can contribute this year. 
  • Review your investment portfolio.  If you have made profits on investment sales this year and are still holding onto investments that are in loss positions, you could consider the sale of the latter.  This would free up cash for reinvestment into high quality investments, and have the added benefit of your loss offsetting some of the gains made previously.
  • For those who run a Small Business and look like making a loss this year, have a chat to your accountant about the new Loss Carry Back provisions, which could allow you to offset your loss against profits made in either of the last two financial years.

Looking beyond 30 June, there are some crucial changes of which you need to be aware:

  • For those over 60, you will be able to make Concessional Contributions of up to $35,000 in the 2013/14 financial year.  You should review your salary sacrifice arrangements to take advantage of the ability to make an extra $10,000 in salary sacrifice contributions in the coming financial year.
  • The feared ban on off-market transfers of listed assets to Self Managed Super Funds has not been legislated, so there is now no need to rush such strategies before 30 June.
  • From 1 July, if you do make Excess Concessional Contributions you will be able to withdraw the excess from your fund and have the amount taxed at your marginal tax rate (as compared to being taxed at 46.5% currently).

Ensuring you have the correct financial strategy in place is vital to achieving your personal and family life goals.  Contact one of our Private Client Advisers if you would like to develop a strategy or review your existing financial plan.

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.