Noel Whittaker
Noel Whittaker

Your tax will change

JUNE 30 is fast approaching and there are major changes coming on July 1.  This is why it's important to take advice about strategies you can take before the end of the financial year.

From 1 July, all concessional (deductible) contributions to super will be limited to $25,000 - they are currently $50,000 for people aged 50 and over.  If you are eligible to put in $50,000 now, and you have the funds available, it would be worth doing.

Higher income earners are going to lose all or part of their private health insurance rebate.If you are affected, talk to your health fund about pre paying a year's premium in advance.  This will enable you to claim the rebate in this financial year.

The superannuation co-contribution limit will drop from $1000 to $500 from 1 July.  Also, the income test will be tightened.  If you are eligible, make a $1000 non concessional contribution prior to June 30.

The medical expenses offset will be means tested for those whose income exceeds the Medicare levy surcharge next year.  They will only be able to claim a 10% tax refund for medical expenses exceeding $5000.  Where practicable, think about bringing forward eligible medical expenses before June 30.

As always, take advice because getting it wrong can be very costly and also be aware that June 30 this year falls on a Saturday.  Better to be early than to miss out.

Noel Whittaker is a co-founder of Whittaker Macnaught Pty Ltd.  His advice is general in nature and readers should seek their own professional advice before making any financial decisions.  His email is noelwhit@gmail.com



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