As we approach 30 June 2020, and subsequently provide information on our EOFY planning tips, we are mindful that some of us may be in a different financial situation than last year due to the COVID-19 pandemic.
Given this, we have also included information that may be beneficial in this respect. However, as with any of the tips provided below, it’s vital to assess the relevance to your personal circumstances before taking action.
EOFY planning tips
Contribute to your super
Concessional contributions cap |
|
Financial year |
Contributions cap amount per year |
2019/20 |
$25,000 |
Carry-forward provision (as an example) |
|||
Financial year |
Total super balance (at 30/06/19) |
Unused cap carried forward from 2018/19 financial year |
Carried forward cap available (at 01/07/19) |
2019/20 |
< $500,000 |
Up to $25,000 |
Up to $50,000 |
Please click here for further information on concessional contributions and eligibility.
Non-concessional contributions cap |
||
Financial year |
Total super balance (at 30/06/19) |
Contributions cap amount per year |
2019/20 |
< $1.6 million |
$100,000 |
$1.6 million + |
Nil |
Bring-forward rule |
|||
Financial year |
Total super balance (at 30/06/19) |
Contributions cap amount (including bring-forward) |
Bring-forward period |
2019/20 |
< $1.4 million |
$300,000 |
3 years |
$1.4 million to < $1.5 million |
$200,000 |
2 years |
|
$1.5 million to < $1.6 million |
$100,000 |
1 year |
|
$1.6 million + |
Nil |
N/A |
Please click here for further information on non-concessional contributions and eligibility.
Contribute to your spouse’s super
Please click here for further information on contribution splitting and eligibility.
Spouse contribution tax offset* |
||
Financial year |
Shaded out threshold |
Cut out threshold |
2019/20 |
$37,000 |
$40,000 |
*The offset is 18% of the lesser of:
Please click here for further information on spouse contributions and eligibility.
Withdraw from your super
COVID-19 early release of super |
|
Financial year |
Withdrawal cap amount |
2019/20 |
Up to $10,000 tax-free |
Please click here for further information on ‘COVID-19 early release of super’ and eligibility.
Meet your account-based pension payment obligations
Minimum annual account-based pension payment requirements |
||
Financial year |
Age |
Minimum percentage drawdown* |
2019/20 |
Under 65 |
2.0% (previously 4%) |
65 to 74 |
2.5% (previously 5%) |
|
75 to 79 |
3.0% (previously 6% ) |
|
80 to 84 |
3.5% (previously 7%) |
|
85 to 89 |
4.5% (previously 9%) |
|
90 to 94 |
5.5% (previously 11%) |
|
95 + |
7.0% (previously 14%) |
*Considering the temporary changes, you may wish to review your pension payment nominations (e.g. whether you have nominated a ‘minimum pension payment amount’ or ‘fixed pension payment amount’) in light of your retirement lifestyle needs.
Please click here for further information on minimum annual pension payment requirements.
Additionally, if you run your own self-managed super fund, please watch our animation, ‘An end of financial year checklist for SMSFs‘, as many of your responsibilities fall at or around the end of financial year.
Manage your capital gains and losses
Capital Gains Tax (CGT) calculation method |
||
Taxpayer |
Asset acquired |
CGT payable (asset held ≥ 12 months) |
Individual |
From 22/09/1999 |
Tax on 50% of nominal gain |
Please click here for further information on capital gains and losses, and capital gains tax.
Please note: When it comes to the sale of an asset that triggers a capital gain or loss, it’s important to remember that this decision should also be consistent with your overall investment strategy.
Prepay your deductible interest and bring forward your deductible expenses
Purchase private health insurance
Medicare levy surcharge (MLS) |
|||
Financial year |
Singles |
Families* |
MLS rate |
2019/20 |
< $90,001 |
< $180,001 |
0% |
$90,001 to $105,000 |
$180,001 to $210,000 |
1.0% |
|
$105,000 to $140,000 |
$210,001 to $280,000 |
1.25% |
|
$140,001 + |
$280,001 + |
1.5% |
*The thresholds for families increase by $1,500 for each MLS dependent child after the first.
Please click here for further information on private health insurance and MLS.
Other considerations
Moving forward
With the end of financial year on the horizon, it’s important to review areas of your personal finances, and take action if applicable, before 30 June. Doing so could give your personal finances a much-needed boost.
By seeking professional advice, an assessment can be made as to the EOFY planning tips that may be appropriate for you, based on your personal circumstances. Importantly, we can help with this.
Lastly, if you want to get a head start on preparing your tax return, please read our article, ‘Checklist: Preparing for tax time the easy way’, as it could help with organising your receipts, tax invoices and documents.
If you have any questions regarding this article, please contact us.