Money Australia – July 2017

The start of

the financial

year is the

best time to

plan how to

maximise your

deductions

7ways

to cut

your

tax

STORYADRIAN RAFTERY

MY MONEYTAX

T

he new financial year is here, and it

comeswiththeannualobligationto

submit our income tax return by Octo-

ber 31. Like most people, you are prob-

ably in a mad panic trying to find/scrape

together your receipts in a futile attempt to boost your

refund (or, worse, reduce your tax payable) with some

last-minuteclaims.Forothers,July1bringsarounda

new sense of hope with a whole year to get their tax

planningrightin2017-18.

It always surprises me when people think that tax

planningonlyoccursinJune.Ifyouwanttosaveas

much as legitimately possible on your largest expense

(tax), it is best to start as early as possible. Tax planning

shouldbea365-day-a-yearexercise,notonemerely

carried out in the few days before June 30.

Here are seven strategies that are more applicable

for action at the start of the year (July 1) than at

the end (June 30).

1

PUT $20PW INTO SUPER

ImustadmitthatforyearsIwassurprisedhowfew

people took advantage of getting some free money from

the government in the form of the superannuation

co-contribution.Thisisavailabletothosewhoearn

under $36,813 and contribute $1000 post-tax into super,

with the government matching it with an extra $500.

ButthenIrealisedthatsomeonewhoisalow-income

earner would really find it tough to miraculously pluck

$1000outoftheairandwhackintosuperonthelast

day of June. In reality, they would probably have other,

morepressingprioritiesforwheretobestutilisethe

lump sum. That is why the beginning of the financial

yearisthebesttimetostartthissuperco-contribution

strategy.Itisalotmoremanageableifyoutake$20

fromyourpayeachweekandputitintosuper,rather

than trying to find $1000 at the end of the year.

2

BUILDYOURNESTEGGQUICKERBY

SALARY SACRIFICING

Inasimilarvein,forthosewhoearnmorethan$37,000,

salarysacrificingintosuperisoneofthebestwaysto

minimise your income tax bill – and it’s legitimate. Although

the super rules have changed from July 1, each year you