End of Financial Year Checklist – 6 steps…

By Andrew Ledingham

End of Financial Year Checklist – 6 steps

12 June 2020

There are just a few more sleeps before the end of the financial year.

So, while there’s not a lot of time, there is some time. Here is our to-do list of essential items to tick off before June 30. Many of these things have bits that need to be ticked off.


So, we encourage you to get in touch to make sure that everything you do is done properly.

1. Maximise your super

For most taxpayers, either they or their employer can claim a tax deduction for concessional contributions with up to $25,000 per year. If you qualify, then it still not too late for you to get extra money into super, simultaneously boosting your retirement savings and minimising this year’s tax bill.

You can also contribute up to an extra $100,000 into super as what’s called a non-concessional contribution (with scope for more as a ‘bring forward’ provision). There is no immediate tax relief for this kind of contribution, but you do get the advantage of having your wealth accumulate within the superannuation system. For many people, this means they lose less from their investment earnings as tax over the years, while also enjoying other benefits such as asset protection.

Think about whether you qualify for a co-contribution scheme, or a low-income earners contribution scheme. Basically, these things amount to (small amounts of) free money for those people who qualify. We have discussed them in previous posts, so look back over previous articles or give us a call.

2. Self managed super

If you have a self-managed super fund, there are various things that need to be done before 30 June. For example, if your fund is in pension phase, you need to ensure that you have withdrawn the minimum annual amount for this financial year. The list of things to do is quite long, and the penalties for not doing them can be quite heavy, so it pays to get in touch with us to discuss this one.

3. Maximise sensible expenses

If you have to incur an expense, then it can make sense to ‘time’ that expense for maximum tax benefit. If an expense gives rise to a legitimate tax deduction, then making it before 30 June will allow you to set that expense off against the current year’s taxable income. That is, you can claim a tax deduction for it.

That said, never do anything just to get a tax deduction. Spending money purely to get a tax deduction is a lot like hitting yourself with a hammer and then taking a Panadol for pain relief. The relief never completely offsets the pain.

If you are self-employed, then there are typically many legitimate expenses that can be paid before June 30. You should consider doing that. Self-employed clients have a lot of things that need to be done before 30 June, many of which are to do with ensuring that your employees’ benefits are all paid. Please don’t make the mistake that many self-employed clients make: don’t forget to pay yourself as well – including super!

4. If you have investment assets…

If you want to donate money to a preferred charity, make sure the charity has tax-deductible status and get a receipt for that donation prior to 30 June.

5. Think about capital gains tax

If you have investment assets, and they have done well, you may be thinking of selling them. Remember, any taxable capital gain will be added to this year’s taxable income if the asset is disposed of before June 30. If this is a year in which your taxable income is otherwise high, there might be a case for deferring the sale. Conversely, if your taxable income is relatively low this year, there can be an argument for disposing of the asset this year and incurring a relatively lower amount of tax. Basically, it’s always good to tidy up your investment assets prior to the end of the financial year. The calculations involved can be complicated, so please seek qualified professional advice on any issue concerning tax.

6. Family trusts and investment companies

If you have a family trust or an investment company, make sure you’ve ‘ticked off’ all that needs to be done prior to June 30. Again, these things can be complicated, so it pays to get qualified, professional advice. You may need assistance in preparing things like minutes of meetings, distribution statements, etc.

AUTHOR : Andrew Ledingham  |  CATEGORY : Financial Services

Offering clear, strategic personal advice that is straight-forward yet specific to you and your future needs.

I am passionate about helping my clients make better decisions in regards to their money. By simplifying complex concepts and keeping my clients informed I am able to significantly increase the likelihood of them achieving their goals. I feel privileged to be a part of my clients financial journey.

Contact my team to book in an obligation-free meeting today.

Authorised Representative of

Fortnum Private Wealth Ltd


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