Plan How to Save Tax

Tax planning is something we often do after the event - once we receive Group Certificates or end of year figures. So why not start investigating your options now to ensure you reduce your tax as much as possible and therefore keep more dollars in your pocket.

To help you get started, following are some strategies that you can consider implementing prior to June 30th each year.

Income Protection insurance protects your income in the event of sickness, accident or injury and premiums are tax deductible, so now is the time to put some insurance in place. Pay the full years premium before June 30th to receive the maximum tax benefit.

Need some expensive dental work or surgery? You can claim a 20% Medical Expenses rebate on dental/medical expenses over the $1,250 threshold. This includes medical expenses for the whole family.
If your taxable income is over $50,000 single or $100,000 couple, you will be liable for the 1% Medicare Levy Surcharge.

Take out private health cover and you can not only avoid the surcharge but also get a 30% tax rebate on the premiums you pay.

Superannuation still offers good tax savings. If self employed you are eligible for a tax deduction on the first $3,000 of contributions made and 75% deduction for additional contributions made up to the maximum allowable. If an employee, consider making additional contributions out of gross salary (salary sacrifice). Even with the superannuation surcharge, superannuation is still a tax effective option for high-income earners.

If you need new equipment for your business, investigate leasing options and consider making the purchase in this financial year.

And last but not least, think about what you need to be doing with your finances for the coming year ahead. Do you need to get some savings strategies in place or work out a debt reduction plan or start to think about your retirement? Remember, it's never too early to start or too late to begin planning for your financial future.

For assistance or further discussion on any of the above please contact "The Women's Financial Network" on 9486 0122 or visit www.womensfinancialnetwork.com.au

Excerpt from the Women's Financial Network "Network News" mini magazine.