March already? Our 5 key tips on how to get your finances sorted before EOFY...
Updated: May 29, 2018
Summer is over. Winter is coming up fast and so is the end of the financial year and dreaded tax time. Trust us, it doesn’t have be a painful experience. Here are our tips on how to get your finances ready before the 2018/2019 season arrives.
1. Shape up your Super
The government made a bunch of changes to Superannuation that began this financial year; are you getting the most out of them? Superguide has a really good list (check it out here) of continuing and changing rules so you can easily see which might apply to your situation. Want free money? If you’ll earn less than $51,813 this year, the government will add up to 50 cents tax free (up to $500) to your Super account for every dollar you put in. If you’re over 65, there are new incentives from July 1 to downsize your home and contribute up to $300,000 from the sale to your Super. Might be time to look at moving!
2. Taking Care of Business
Scouting about for a few more deductions before the EOFY? If you’ve got a small business or are a sole contractor you might want to bring forward paying July’s rent, repairs and other utility bills to just before the June 30 and get a jump on next year. If you’re an employee, are there any work-related items, new or those that need replacing, to shop for now? Talk to your accountant or tax professional asap and see what other unexpected deductions the ATO will accept. Every little bit counts!
3. Healthy You, Healthy Bank Account
It’s the one time of year when it’s definitely a good thing to be dipping into your health insurance. Check in to see if you cover offers extras like fitness classes or specialist visits that don’t roll over to next year and book em’ in. Bonus: this could potentially lead to less time off work which positively affects your earning potential, particularly if you are a casual, work on commission or run your own business. If you’re soon to turn 31, you might like to consider getting private health insurance for the first time so that you don’t get stung with the Medicare Levy Surcharge (for not having it) and Lifetime Health Cover Loading (meaning your insurance will be more expensive forever if you wait to get it until you’re older). The insurers know we’re all leaving it until the last minute so sometimes offer good deals just before EOFY.
4. Get ‘appy
Receipts, bills, notes and financial records all over the place? After New Year’s Eve, the end of the financial year is surely peak time for broken “I’ll be better next year” promises. It’s hard to see where you’re headed if you can’t see from where you’ve come. Download a free, basic app like Smart Receipts to your phone now to keep track of your finances and save yourself a massive headache come tax time. For something a little more technologically advanced - but no less easy to use - Cashmaster keeps sight of all your accounts and tracks them in the one place. Your accountant will love you.
5. Many Happy Returns
Start spending your tax return now...in your head. If you’re doing it right you should get at least a little something back and you’re less likely to blow it all at new season sales if you have a plan to work towards. Soon after tax time; you’ll have all your financial records ready to go and you’ll be surprised at the impact even a few hundred extra dollars here and there could have on your life and future goals.
Speaking of goals, there's no better time than the fast approaching EOFY to book an appointment with your Financial Advisor (that's us!) We'll help you plan for next year and beyond so that your future goals are never out of reach.
Click here to book a free consultation with us today.