Presenting part one of a three part checklist from HHG Legal Group’s Tax Law Team.
Make sure you are aware of not only your tax planning opportunities but also your responsibilities before the end of this financial year.
What tax, superannuation and estate planning matters should I review before the end of the financial year?
Before the end of the financial year, individuals should review their superannuation contribution strategy, particularly in light of changing contribution rules and limits. It is also important to ensure superannuation trust deeds, binding death benefit nominations and investment strategies remain current and aligned with financial goals. Estate planning documents, including wills, powers of attorney and guardianship arrangements, should be reviewed following major life events or changes in financial circumstances. Finally, insurance coverage should be assessed to ensure adequate protection for family members, business interests and succession planning needs.
Superannuation
Maximise your retirement funding
Given the announcements made by the government in this year’s budget, the opposition’s response and the impending election on 2 July 2016, there is a great deal of uncertainty regarding superannuation contributions.
If you normally make end of financial contributions you ought to discuss with your accountant or financial adviser how the proposed changes impact your current contribution strategy before you make any further contributions.
If you do not normally make contributions because you intend to make large contributions later in life, you ought to also speak to your accountant or financial adviser as this strategy may no longer be appropriate given the proposed changes.
Is your superannuation trust deed up to date?
Some retail funds and self managed funds only permit binding death benefit nominations to last for 3 years. Is your binding death benefit nomination up to date? Does it specify the beneficiary or beneficiaries you would like to provide for? Can you do a non-lapsing nomination? What does the trust deed say?
Is your investment strategy up to date
Is your investment strategy up to date and maximising the available options for investment such as borrowing arrangements?
Estate planning
Review your estate planning requirements.
Do you have:
- a Will;
- an Enduring Power of Attorney;
- an Enduring Power of Guardianship; and/or
- an Advance Health Directive?
Are they still appropriate and up to date? Common triggers to update these documents include marriage, death, separation, divorce, birth of a child, health conditions, acquisition of assets, establishing a self managed superannuation fund, establishing a family trust, and engaging in new business.
Would you like to change the beneficiaries of your Estate or change your distribution plan? Do you need to appoint a new Executor, guardian for your minor children, Attorney or Enduring Guardian?
Insurance
Do you have appropriate insurance cover?
- Will your spouse have adequate funds to maintain their existing lifestyle when you pass away?
- Will your business partner be able to afford to pay for your share of the business to your loved ones when you pass away?
- Do you need a new valuation of your business and as a result need to increase your insurance cover?