Let’s Aim For Bigger & Better

While the general population doesn’t quite feel the same party atmosphere around the 1st of July as they do the 1st of January, this time of year is actually quite exciting…

Not only is the next season of Game of Thrones soon arriving (yes, Winter is coming!), but the start of this financial year has brought with it many changes to tax rules for individuals, businesses and super funds.

Here’s our wrap up of the good, bad and ugly that came into effect once the clock ticked over:

• If you’re a property investor… you will no longer be able to claim tax deductions for travel expenses related to your investment property (you guessed it – ugly!)
• If you’re a Netflix fanatic (like us)… tax on digital downloads (such as books, movies, streaming and smartphone apps) kicks in on July 1. Expect prices to rise.
• If you’re a small business owner… the $20K instant asset tax write-off is being extended for another year and will be open to businesses with an annual turnover of up to $10 million (score!)
• If you’re a traveler…. heading off on holidays shortly in search of warmer weather, there is a bit less admin for you – the outgoing passenger green card is no more.
• If you’re a baby boomer with a big house…. it’s time to downsize! You can make a non-concessional superannuation contribution of up to $300K from selling your primary residence if you have lived there for at least 10 years.
• If you’re sick and need a doctor… the Medicare rebate freeze is to be lifted by incentivising doctors to bulk bill… BUT you’ll be paying for it one way or another with the rise in Medicare levy rates.
• If you’re a first home buyer… you can put up to $30K in super to help with a home deposit.  (PS: if you have a SMSF you can add your children as members and help them contribute… our strategy minds are ticking)

With all these changes coming into play, the beginning of the financial year becomes a good time to review your performance over the past 12 months, and to plan the next 12 months so they are bigger and better.

Where to start?

Identify exactly where you are right now… where you stand today. You must know, understand and accept your starting point before you can make any plans to move forward.

What should your approach be?

1. Start with putting together a snapshot of your assets and liabilities to determine your financial position (and be real with your numbers – try not to “round-up” your assets or “round down” your liabilities).
2. Prepare and lodge your 2017 tax return so you can assess your income, expenses and tax position. This year-end process helps you determine your financial capacity for change so don’t leave it too late.
3. Decide what position you want to be in by 30 June 2018 (be realistic!).
4. Set a plan to make it happen. With a plan in place, the only remaining step is to…
5. Take action and make the conscious effort to act on your commitments so you can reach your big picture.

If you would like some guidance, a serious kick in the butt or simply aren’t sure where to start, get in touch with our team.

We can give you the tools to provide a snapshot of where you are now, we can help you define your big picture, and then determine your financial capacity for change. From there, we can help you plan a way to improve, grow and take advantage of proven strategies and tools to achieve financial security.

We look forward to engaging with you soon, and as always, if you need any help (or just wanted to chat), give us a call… we are only a phone call away!