We've been picturing EOFY celebrations in the previous post (the business edition), because do we really need an excuse to celebrate? I am however keen to hear how you mark EOFY? Do you enjoy the widely advertised sales, commemorate the middle of the year, or do you take a moment to think through your finances as we transition to a new financial period?
I would guarantee that many of you do not think about tax until it is time to prepare your tax return , however by then it may be too late to influence your tax outcome. So, as 30 June approaches, it really is the perfect time to take some action.
Are you ready? Let’s get stuck into a few tips:
Get those records in order - Easily ignored, however if not tracked claimable deductions can be missed at tax time. There are multiple ways in which you can track your deductions through out the year. The ATO offers a free App, there are many online tracking options available for a cost, or you may even use a spreadsheet, or hold a hard copy of your receipts in fancy folder. Do what works for you! (as long as it allows you and your accountant to easily refer to the details).
Understand what can and cannot be claimed - Valid claims can include study costs, work-related expenditure, investment and tax related advice, interest costs, donations and many others. Being clear on what is deductible, allows you to easily keep track of the expenses relevant to you. Review the ATO guidance on what deductions can be claimed here.
Bring forward any planned expenditure - Should you planning to invest in expenditure that is personally deductible, consider purchasing it before 30 June to allow for the deduction in the current tax year. This is only a good idea if you are planning on this investment overall, not worthwhile when spending just to spend.
Review insurance policies, loan terms and active subscriptions - Take time to confirm whether any of our circumstances have changed, and whether our current levels of cover or service levels are still appropriate for you
Partner with professionals - It’s very helpful to seek out advice. Professionals in this space can assist with maximising your tax return and investments, and keeping on top of all changes in tax laws and more.
Commence planning for next year - Take a moment to reflect on the year that was, review your finances and set yourself up with a plan for the next one by taking the time to put together a realistic budget.
Let’s not leave it too late, we might just miss out on those celebrations!
What do you do at this time of year?? Share your thoughts and ideas in the comments..
This information has been prepared for information purposes only, current at the time of publication and is not intended, nor should be relied on as tax, legal or accounting advice. Please consult a professional advisor before engaging or relying on any content.
Comments