It’s a new tax year – the arrival of the 2018/19 tax year brings with it many financial opportunities. Elston experts have focused on five of the best and explain how you can take advantage of them.
The arrival of the 2018/19 financial year has brought with it some potential new opportunities to consider:
1. Buying your first home?
From 1 July this year, eligible first home buyers can withdraw voluntary contributions made to their superannuation fund to purchase a first home under the First Home Super Saver Scheme (FHSSS). This applies to contributions made after 1 July 2017. The FHSSS allows eligible first home buyers to save their deposit in the concessionally taxed super environment.
2. Selling your home?
Eligible super members can make super contributions of up to $300,000 per person from the sale of their home after 1 July this year, if they are aged over 65. These contributions don’t count towards the contribution caps and can be made even if the member doesn’t meet the usual age, work and other contribution tests.
3. Eligible for a tax cut?
The tax cuts announced in this year’s Federal Budget have been legislated. The first tranche took effect on 1 July this year, providing savings of up to $530 (see table below). This extra cash could go towards paying off debt or making extra super contributions.
Source: Budget 2018-19 fact sheet, ‘Lower, fairer and simpler taxes’. The tax is calculated taking into account the low income tax offset, low and middle income tax offset and the Medicare levy (at 2 per cent).
4. Want a super deduction?
From 1 July 2017, most people (including employees for the first time) were eligible to claim personal super contributions as a tax deduction. This could reduce taxable income and give super savings a much needed boost.
5. Not likely to max out your super cap?
If super members make concessional (pre-tax) super contributions of less than the cap of $25,000 in 2018/19, they may be able to carry forward unused cap amounts, for use in a future financial year. This is worth keeping in mind, as it means members may be able to make ‘catch-up’ concessional contributions from 1 July 2019, if cashflow allows.
At SB Wealth, we can help assess whether any of these opportunities suit you and your circumstances, and adjust your financial plans accordingly.
If you would like to discuss further, please don’t hesitate to call or email your adviser.
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