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Smart End of Year Financial Strategies

Pre-Pay Income Protection Premiums and reduce this year’s tax

If you are employed or self-employed, pre-pay 12 months income protection/salary continuance premiums and bring forward your tax deduction to this financial year.

Don’t have Income Protection insurance?

At age 40, there is a 48% chance you will have a serious health event ie Death/Disability/Trauma.  We are obviously not bulletproof and you should consider the impact on you and your family’s financial security if you received no income over an extended period.  The bonus is Income Protection premiums are tax deductible.

Pre-Pay Interest on Your Margin Loan or Investment Loan

If you have borrowed to invest into an income producing asset, all or part of your interest will be tax deductible.  You can pre-pay 12 months interest on your investment loan and again bring forward your tax deduction to this financial year.

If you don’t have other investments, you may want to take advantage of low interest rates and consider gearing as a tax effective wealth creation strategy in addition to your Super fund.

Please contact your MP+ Accountant or Financial Adviser for further information.

Aaron McCracken
Snr Financial Adviser
aaron.mccracken@mckinleyplowman.com.au

written by:

McKinley Plowman