10 tax planning tips for 2020

About the author:

Terri Bradford
Author name:
By Terri Bradford
Job title:
Director, Wealth Management
Date posted:
28 April 2020, 8:30 AM

It is easy to become distracted by the impact the Coronavirus has had on individuals, businesses and the economy. Indeed, everywhere we turn — TV, radio, newspapers - all talk is centred on the virus.

With everything going on, it's important we try to maintain other, more 'normal' aspects of life. Things we can control, such as our end of financial year tax planning.

Why not escape from all things COVID and instead, start thinking about what needs to be done before the end of this financial year.

What do you need to do to get your financial house in order before 30 June 2020?

Some handy hints for you to consider before 30 June

  • Have you incurred any deductible expenses this year? Make sure you have copies of all receipts. Think about allowable deductions while you have been working from home due to the virus. The ATO has made things easier in this regard so speak to your accountant.
  • Do you have copies of your investment statements, including dividend statements?
  • Talk to your adviser to identify investment and superannuation strategies you can put in place before 30 June to help protect your retirement savings.
  • This is a good time to review your investment portfolio. Markets have been in a downward spiral since March so are there opportunities you can take advantage of?
  • If you own property make sure you have your paperwork up to date, particularly if you can claim depreciation.
  • Are you in the pension phase of your super? Understand how the $1.6 million Transfer Balance Cap works so you don't inadvertently incur penalties by breaching this cap.
  • Review your capital gains and losses for your investment and superannuation portfolios.
  • What superannuation contributions have you already made, or intend to make prior to 30 June? Talk to your financial adviser to ensure you understand what contribution limits apply to you.
  • If you are already receiving a pension from your superannuation you will need to make sure you meet your minimum pension requirements before 30 June otherwise significant penalties could apply. The Government has allowed a 50% reduction on minimum pension standards this financial year to help pensioners manage retirement savings.
  • Are your personal insurances, including life and income protection insurance, in order? Has your personal situation changed?

Will you be ready? Don't let COVID-19 distract you from the things you would normally focus on at this time of year. It's time to get back on track.

More information

Feel free to contact your Morgans adviser to discuss your end of financial year planning.  It might also be a good time to start thinking about a portfolio management service that will make next year’s paperwork and tax time simple.

Morgans clients can find more EOFY strategies, as well as market and company analysis by logging into the research section of the client website. Alternatively, please contact your Morgans adviser or nearest Morgans office for access.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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