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As we come to the end of the 2023 financial year, I hope you have all had a successful year. It is never too early to look at the year ahead and set financial goals. When setting your financial goals, it’s important to make them “SMART”: Specific, Measurable, Achievable, Realistic, and Time-bound.

Here are a few areas that you may want to review.

Review your debt management strategy

As interest rates have risen significantly over the last 12 months, it’s important to review your debt management strategy and make necessary adjustments. It’s important to know what your current interest rate is and see if refinancing your mortgage is possible.

Seeking advice from a mortgage broker can help you identify if you need to make any adjustments to manage interest rate risk and ensure your mortgage repayments stay within budget.

Review your insurance coverage

We have seen personal insurance costs rise over 20% year on year. It is important to first understand what insurance cover you have in place and, secondly, if it is still right for your financial and lifestyle needs.

Review your estate planning

Ensure that your estate planning is up-to-date, including your Will, Financial and Medical Enduring Power of Attorney, and your Advanced Health Directive should you have a serious chronic health condition. When reviewing your Will and overall estate plan with your Solicitor, you should consider whether including a Testamentary Trust in your Will could allow you to leave assets to your beneficiaries in a way that provides tax efficiencies and asset protection benefits.

Make the most of your superannuation

We have spoken to a lot of clients about maximising their super contributions for the 2022-2023 financial year. In addition, many clients were able to make excess super contributions and use their Carried Forward Concessional Contribution cap that has accumulated from the last 5 financial years. This will allow these clients to claim a tax deduction to reduce taxable income for the 2023 year.

It is now time to ensure these contributions are invested correctly in line with the clients’ investment goals and objectives.

Claim all possible tax deductions

Think of claiming all possible tax deductions. Start collating your expenses throughout the financial year and ensure you claim all possible deductions on your tax return. This includes work-related expenses, charitable donations, and investment-related expenses. Getting together the necessary documentation to support the preparation of your tax return is essential to ensure that you accurately report your income and claim all the deductions you’re entitled to, potentially reducing your taxable income and lowering your overall tax bill.

WLM can help

Please contact us if you would like advice or assistance on how to reduce your tax.