“It is the time of year when we all become a little bit obsessed with tax”, says Community Bank Samford’s Mandy Bell. “And with good reason, the EOFY is important as we look to maximise returns and ensure our records are up to date. With tax rules changing regularly, new deductions being permissible, and others being removed, there is always something to consider as you prepare for tax time. Here are a few things worth adding to your checklist as you prepare for the end of the financial year and start having discussions with your accountant or tax agent.”
1. Organise Your Financial Documents
Keeping your financial documents in order is essential for a smooth EOFY process. Ensure all your income statements, receipts, and bank statements are up-to-date and accurately recorded.
Steps to Take:
- Gather all your payslips and income statements.
- Collect receipts for work-related expenses.
- Ensure all transactions are correctly categorised.
2. Review Your Superannuation
Checking your superannuation can help you ensure that your contributions are accurate and that you’re on track for retirement. Consider consolidating multiple super accounts to save on fees.
Steps to Take:
- Log into your superannuation account and review your balance.
- Check that your employer has made all required contributions.
- Consider consolidating super funds if you have more than one.
3. Maximise Tax Deductions
Take advantage of all available tax deductions to minimise your tax liability. Common deductions include work-related expenses, donations to charity, and self-education expenses. Consulting with a tax agent can help you identify additional deductions.
Steps to Take:
- List all potential deductible expenses.
- Gather necessary documentation for each deduction.
- Consult with a tax agent for advice on maximising deductions.
4. Review Your Insurance Policies
EOFY is a good time to review your insurance policies, including health, home, and income protection insurance. Ensure your coverage is adequate and compare policies to find better rates.
Steps to Take:
- Check the coverage and benefits of your current policies.
- Compare policies from different providers.
- Update your coverage if needed.
5. Plan for the New Financial Year
The EOFY is an excellent time to set financial goals for the upcoming year. Consider your savings, investments, and spending habits to develop a budget and plan that supports your financial well-being.
Steps to Take:
- Set realistic financial goals for the new financial year.
- Create a budget that aligns with your goals.
- Review and adjust your spending and saving habits.
Final Tips
“As with any financial decision, it is important that people stay informed and keep up with any changes in tax laws and regulations that may affect your finances. While it is possible to prepare your own tax returns and lodge them directly with the ATO, I would always advise working with a local tax agent or accountant as they are across the relevant rules and fully understand the nuances within the tax system. A tax agent or financial advisor can provide valuable insights and help you navigate complex financial matters.”
“EOFY is also a great time to review your financial health. At Community Bank Samford, we are always happy to chat about your financial goals and current financial needs. Whether you want to review your mortgage, assess your insurance or explore new financial options for investments and loans, we’re here to help,” said Mandy.
