Most of these changes will take place on 1 July 2017.
That’s why we need to start planning ASAP with you.
The expert Anderson & Associates Team have spent the past 3 months creating a number of cutting edge and brilliant strategies to help you.
There are 3 key actions for you right now.
1. Maximise Super Contributions – Large amounts now for possibly the last time
While you might not be flush with cash now and able to put large amounts into superannuation, it’s important that you’re aware of what is possible to maximise your super balance and how to reduce your tax.
The following changes occur from 1 July 2017:
The tax deductible super contribution cap decreases to $25,000 per year from $30,000 per year for up to age 49 or $35,000 per year for age 50 to age 75, after passing a work test if over 65.
The non-tax deductible super contribution cap decreases to $100,000 per year (provided your super balance is less than $1.6 million) from $180,000 per year.
You may have a once-off opportunity to make a non-tax deductible contribution of $540,000 before 30 June 2017 into super, depending on prior year contributions if any.
We need to meet and consider your overall personal and family circumstances, and then we can design for you the most tax effective super contributions you can make prior to 30 June 2017.
2. After you’ve maxed out your Super tax deductions – what else is there?
One of the most effective ways to reduce your tax is through super contributions.
The second is to prepay interest on an investment asset.
One solution is to prepay interest towards a portfolio of shares that are capital protected (meaning the value of the initial portfolio is 100% protected if the market falls).
This has the effect of getting a tax refund and then using it to help fund owning a protected share portfolio, usually for a 2-year period.
This strategy doesn’t apply to everyone – our Wealth Advice Team must pre-qualify you to ensure you will be better off from this strategy and will then provide you with a Statement of Advice which clearly outlines our strategies and advice for you
3. Establish a “Bloodline Will” to keep your money and assets in your family
We believe a “Bloodline Will” (or a “Lineal Descent Will”) is possibly the most important thing you can create for your family.
Rather than making gifts under your Will to individuals, you can make gifts to Bloodline Trusts set aside for those individuals. After your death, the individual you have intended to benefit will control the Bloodline Trust set aside for them and will be able to use the assets in the trust as if they owned them. However, those assets will not be at risk should the individual divorce or have a separation.
Under the terms of a Bloodline Will:
• the passing of the capital assets or proceeds is limited to the Will-maker's bloodline;
• income may be distributed to a broader range of beneficiaries, including in-laws (at the discretion of the trustee);
• assets are protected from attacks against beneficiaries, whether from personal creditors or the Family Court;
We can help you by coordinating a tax effective Bloodline Will for you with our expert Estate Planning Lawyers.
This is vital – don’t delay in instructing us to set this up for you!
Other General Tax Planning Strategies
Of course, we’ll consider all the usual 2017 General Tax Planning options for you at the same time.
Contact us TODAY to book in your initial 2017 Tax Planning Meeting with us.
Imagine what you could do with your tax saved!
• Reduce your home loan
• Top up your Super
• Have a holiday
• Deposit for an Investment Property
• Upgrade your Car
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.