Five things to do before June 30

Provided by Mercer. The information in this article does not necessarily reflect the views of the Trustee.

Over the past month you would have no doubt read in the media about a number of Federal Government initiatives that may affect your plans in the coming financial year.

To take advantage of existing rules- to minimise your tax and maximise your income and savings- there are a number of things you should consider doing before June 30.

Below we have listed a number of time-sensitive actions and tips for you to think about.

1. Co-contributions

If you are eligible for the government super co-contribution, now is the time to make the most of it. If you make a personal contribution to super prior to June 30 2012 the government will match it, dollar for dollar, up to a maximum of $1000.

For the 2011/12 financial year, those with 'total income' of $31,920 or less who make a $1,000 personal contribution to super are eligible for a maximum government co-contribution of $1,000. The co-contribution reduces by 3.333 cents for each dollar over $31,920, cutting out completely once an individual's total income reaches $61,920.

After 1 July 2012 the government co-contribution will be reduced to a maximum of $500 with the higher threshold reduced to $46,920.

2. Concessional contributions cap

For those aged 50-years and over at 30 June 2012 consider topping up your Concessional Contributions to super. The present $50,000 cap will reduce to $25,000 for everyone from 1 July 2012.

3. Non-concessional contributions

Consider making an after-tax contribution to super (non-concessional contribution) to boost your superannuation savings. The non-concessional contributions cap is $150,000 for 2011/12.

You could make a contribution for your spouse – and get a maximum tax offset of $540. If you make a $3,000 contribution to your spouse's super and their total income is $10,800 or less then you can get a tax offset of $540. If your spouse earns more than this or you make a smaller contribution, the rebate will be smaller (cutting out where your spouse has total income of $13,800 or more).

4. Private health insurance rebate

Consider pre-paying your annual private health insurance premium for the next 12 months before 30 June. Come 1 July 2012, the private health insurance rebate will be means tested and policy holders will no longer be guaranteed the 30% rebate.

Currently, most Australians with private health insurance receive a 30 per cent rebate from the Government to help cover the cost of their premiums.

From 1 July 2012, the private health insurance rebate will be income tested. If you expect to earn more than $84,000 as a single or more than $168,000 as a family in the 2012-13 financial year your rebate will be affected.

For singles who earn between $84,000 and $97,000, the rebate will be cut to 20%. Singles who earn more than $97,000 but less than $130,000 will receive a 10% rebate. The rebate cuts out altogether for singles who earn more than $130,000.

For families who earn between $168,000 and $194,000 the rebate will be 20%. Families who earn more than $194,000 but less than $260,000 will get a 10% rebate. The rebate for families cuts out altogether for those who earn more than $260,000.

5. Tax deductible expenses

Speak to your accountant about bringing forward any tax deductible expenses – interest payments, income protection insurance premiums, donations to charity, income producing related expenses and so on.

This information has been prepared by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. Any advice contained in this document is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised, financial adviser if you are unsure of what action to take. "MERCER" is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2012 Mercer LLC. All rights reserved.

LCA Nominees Pty Ltd ABN 61 008 204 939 AFS Licence #240571, as Trustee for Lutheran Super ABN 93 371 348 387.

This website is provided by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. The Trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.