It’s on! Don’t miss out on the countdown for June 30 savings

IF there’s one week of the year you don’t want to be forgetful about finances, it’s now. June 30 is just days away and people who fail to act can miss out on thousands of dollars.

WELCOME to the most costly week of the year for forgetting financial stuff.

When the calendar ticks over to July next weekend, many end-of-financial-year opportunities will disappear.

MBA Financial Strategists director Darren James said the last week of June was “a critical part of the year” and some strategies were use-it-or-lose-it if not done by June 30.

“For a lot of people the end of the financial year is a good line in the sand to say ‘we need to look at our finances. Let’s make sure we are doing everything we can to maximise our position’,” he said.

Here’s what not to forget.

INVESTORS

Property investors can spend money on maintenance and prepaying interest or landlords insurance to claim a quick deduction. However, travel-related deductions are no longer claimable.

Financial planner Darren James says June 30 is a good “line in the sand”. Picture: Supplied.

Share investors can prepay interest on margin loans, and potentially sell losing shares to offset capital gains tax elsewhere. Investors selling shares for a capital gain should wait until July 1 if they can.

EMPLOYEES

Whether home office, car or uniform expenses, subscriptions or donations to charities, spend up this week to bring forward tax deductions.

“If it’s a tax deduction you know you are going to spend, it’s much better to do it now when you can get the deduction straight away, as opposed to doing it in July or August then waiting another financial year to get it back,” Mr James said.

DEDUCTIONS: Don’t fail the ATO’s work test on tax this year

Some people failed to claim their income protection insurance, he said. If your policy is held outside of super, prepaying a year’s premiums can deliver a handy tax deduction.

SUPERANNUATION

All employees can now make tax-deductible contributions to super, and there are generous incentives such as the $500 government co-contribution for low and middle income earners and a tax offset of up to $540 if you put money into the super of a spouse earning below $40,000. But be quick.

Dixon Advisory‘s Nerida Cole says bank balances should be checked before big June 30 transfers.

NGS Super acting CEO Laura Wright said people should check their super fund’s website for cut-off times because voluntary contributions needed time to be processed.

“You’ll probably need to make any voluntary contribution a few days earlier than 29 June if you’re using internet banking via BPAY,” she said. “For many funds, it will already be too late to make a contribution for this financial year by cheque.”

RETIREES

Dixon Advisory managing director Nerida Cole said self-funded retirees should make sure their minimum pension payment was taken from their retirement pension account before June 30.

“Not taking the minimum means your retirement pension will lose the tax-free status and instead pay 15 per cent tax on earnings, she said.

FIRST HOME BUYERS

“First home buyers who maximise the contribution under the First Home Super Saver Scheme before 30 June and again in July, can get around $5000 in tax benefits — or $10,000 as a couple — to help with the deposit on their first home,” Ms Cole said.

People should also check bank account balances before transferring large sums, to avoid fees or missed deadlines, she said.

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