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Tax Planning for Individuals

Article By Adam Hurwood | | Financial Planning

As we approach the end of the 2023 financial year, it’s crucial to start thinking about your tax planning strategies to maximise your tax savings. With this in mind, let’s delve deeper into the most important tips for tax planning this EOFY!

Review Your Superannuation Contributions

Superannuation is a tax-effective way to save for your retirement, and making additional contributions to your super fund can help you reduce your taxable income. The concessional contribution limit for the 2023 financial year is $27,500, and if you’re eligible, you can make voluntary concessional contributions to your super fund before the end of the financial year. By doing so, you can reduce your taxable income, and your contributions will be taxed at a concessional rate of 15%.

Consider Using Carrying Forward Concessional Contributions from previous years

From 1 July 2018, eligible individuals have been able to carry forward any unused concessional contributions for up to five years. This means that if you haven’t used your full concessional contribution cap in previous years, you may be able to make a larger contribution this financial year. Carrying forward unused concessional contributions can help you maximise your super contributions and reduce your tax liability.

Maximise Your Deductions

To reduce your taxable income, it’s essential to ensure that you’re claiming all the deductions you’re entitled to. Work-related expenses, investment expenses, and donations to charity are just a few of the deductions you may be eligible to claim. Keeping accurate records and receipts to support your claims is also vital to ensure you’re not missing out on any deductions.

In conclusion, tax planning is a vital aspect of financial management that can help you maximise your tax savings and reduce your tax liability. By reviewing your superannuation contributions, carrying forward unused concessional contributions, maximising your deductions, reviewing your investment portfolio, and seeking professional advice, you can develop a tax planning strategy that suits your individual circumstances. 

For further information and guidance on tax planning for the end of the 2023 financial year, please reach out to your financial planner at Altitude Advisers. They can provide tailored advice and support to help you maximise your tax savings and achieve your financial goals.