A new financial year is a great time to review your finances and make sure they are in tip-top order.
It’s the time of year to ensure you are claiming all your allowable deductions and that your tax records are in order.
Here, we look at how to prep for 30 June whether you are employed or if you work for yourself.
Tips for salaried staff
If you are employed either full-time or part-time, it’s likely you will be required to complete an annual tax return after the end of the financial year.
There’s still plenty of time to ensure your finances are in the best position possible as we head towards 30 June.
Now’s the time to start making sure your tax records are in order. You won’t receive your group certificate until after the end of the financial year, but check you have receipts for all allowable tax deductions. That way, you can ensure you are claiming all eligible work-related expenses.
If you own an investment property it’s likely that you will be able to claim interest payable on the mortgage, as well as depreciation and other expenses. The end of the tax year is the time to ensure your records of these costs are accurate.
If you have other borrowings, review your debts and consolidate them if appropriate. Ensure you can still meet the repayments.
It might also be an opportunity to review whether you have the capacity to make additional voluntary contributions to your super fund to help reduce your taxable income and bump up your retirement savings.
The concessional superannuation cap will drop to $25,000 per year for everyone from 1 July. At the moment, it’s $30,000 for people younger than 50, and $35,000 for people older than 50. So if your circumstances allow, it might be an idea to contribute up to your limit to take advantage of the more favourable rules now in place.
It can be an idea to talk to an accountant or financial adviser about making extra contributions to your super fund.
Working for yourself
The end of the financial year is also a great time for self-employed people to take stock of their finances. Like employed people, this includes ensuring you have kept accurate records of your income and expenses, and identified your allowable tax deductions.
There are a number of government incentives available for small businesses at the moment, including the $20,000 instant asset write-off program.
If you are planning on investing in assets like technology, office fixtures or anything else you need to run a thriving business, it may be an idea to bring the expense into the current financial year to generate a tax write-off. Talk to your accountant about taking advantage of this and other government incentives available for people who work for themselves.
Remember, if you are completing your tax return yourself you will need to file it by 31 October. You may be able to file your return later if you use a registered tax agent or accountant to file your return.
Whether you work for an employer or yourself, 30 June is a great time to review your budget and ensure you’re financially fit for the new financial year. Start now and you’ll have everything ready by 1 July.