The end of financial year has come and tax time is upon us. Now is a great time to think about improving your finance and money management over the next 12 months. Keep reading for some helpful tips for the new financial year.
See A Financial Planner
Organising to see a financial planner at any age is a great idea to discuss matters like managing and contributing to your superannuation. There are certain tax benefits when contributing more to super, so consider booking in time to discuss your needs with a financial planner. A financial planner can also discuss investment opportunities, wealth management and estate planning.
Track Your Spending
Now is a great time to track your spending in preparation for the next financial year. For work related expenses, do you know where your money goes each day/week or month? If you incur a lot of work related expenses it is a good idea to track these as you go, rather than trying to think about all the money you’ve spent over the year that you want to include in your income tax deductions. The Australian Taxation Office has a tool called myDeductions which is ideal for employees or people who own their own business to track their expenses on the go.
Tax deductions you may be eligible for varies between individuals. Keep up to date with the deductions you can claim by visiting the ATO website.
Use your Tax Refund Wisely
Depending on the size of the refund (and assuming you receive one) there could be investment options that would be wise for you to consider. This is where a financial planner can assist you with making decisions for short and long term wealth management.
You may be tempted to spend your tax refund straight away, especially with retailers having EOFY sales. Instead, put the extra money to good use in a savings account, or use it as an extra repayment on a loan if possible. Use our lump sum repayment calculator to see how much interest you could save by making a one off large repayment.
Get an organised system for keeping your tax records
It will be less stressful if you have everything in order well ahead of tax time in preparation for the next end of financial year. Below is a list of documentation you will need to help you complete a tax return.
Your Tax File Number (TFN)
Summary of any interest you’ve earned on your bank accounts (you’ll find this in our online banking)
Information relating to investment income, shares, dividends and managed funds
Private health insurance statement
Details of child support payments
Receipts from donations to a charity
Receipts for work related expenses
Research qualified tax agents
If your want someone to look after your tax affairs, using an accountant or registered tax agent may work for you. The cost of managing your tax affairs is usually deductible the following financial year. Check out the Tax Practitioners Board online for a list of registered tax agents so you are well prepared for the end of financial year and can book ahead of time.
Are you looking to get your finance and money management under control and need some extra help? Get in touch with the friendly team at Horizon today and let us assist you.
The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.