Michael Miller’s top 6 financial tips


MLC Advice Canberra’s Michael Miller has sent in 6 top tips for making the most of your money with the end of the financial year looming.

  1. Super contributions
    Look at increasing contributions to super in an effort to save more for retirement and benefit from some tax concessions. Many people don’t realise:
    — if employed, super contributions can be made from pre-tax salary
    — if self-employed, a tax deduction is possible for the money put into super
    — if contributing after-tax pay or savings into super, you may pay less tax on investment earnings, qualify for a super contribution from the Government or receive a tax offset.
    Beware of the contribution limits as they might be subject to additional tax and charges exceeded.

  2. Interest on investment loans
    Prepaying interest on an investment loan before 30 June may provide a potential tax saving, due to the tax deduction being brought forward.

  3. Payment of insurance premiums
    There may be the option to claim a tax deduction this financial year if an income protection policy outside of your super account is taken before 30 June.

  4. Offsetting capital gains tax
    Reduce the amount of capital gains tax by making tax deductible contributions to super, if eligible.

  5. Life after work
    Speak to a financial adviser about how to structure financial assets in the most tax-effective way and maximises income-generating capability in retirement.

  6. Right level of cover
    Some insurance benefits will not be available through a super fund from 1 July 2014. To ensure you have the right cover in place, talk to a financial adviser to find out more.

“Every little bit helps, investing just $5.50 per day can mean the difference of almost $100,000 at retirement time. There is still time to make the most of the next 60 days before the end of the financial year. We are encouraging people to take action today,” Michael said.

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