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Stage 3 Tax Cuts Strategies

Updated: May 6

A picture of a man using a calculator to save on tax

From 1 July 2024, we are all getting a tax cut. For illustrative purposes, those earning $80,000 per annum will pay $1,679 per annum less in tax, whilst those earning $200,000 per annum will pay $4,539 per annum less tax.

Whilst few will be complaining, it is important to consider that from 1 July 2024, tax deductions will therefore be slightly less attractive. Therefore, people could consider bringing forward tax deduction expenses to the current financial year to save more tax. Some examples include:

  • Tax deductible contributions into superannuation. Remember that if you have any carry forward allowances from the 18/19 FY, they must be used up before June 30.

  • Prepayment of premiums on an income protection policy held outside super

  • Prepayment of interest on a fixed rate investment loan

  • Prepayment of expenses for a rental property and

  • Prepayment for work related subscriptions

By contrast, anything that incurs tax such as sales of investments which have generated capital gains, could potentially be delayed until the new Financial Year.

If you need assistance with these decisions, reach out for an obligation free appointment today!

The purpose of this content is to provide general information only and is not personal financial advice.

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