As the end of the financial year approaches, it's time to get your documentation in order and prepare for a fresh start. To help you navigate through this important period, we've put together an end of financial year checklist. By following these steps, you can ensure that you make the most of tax benefits, stay organised, and set yourself up for financial success in the coming year.
Review your income and expenses
Take a close look at your income sources and expenses from the past year. This could include your wage, any government benefits, interest, rental income etc. Ensure that all your financial records, including payslips, invoices, and bank statements, are in order. This step will help you identify any potential discrepancies and make the necessary adjustments before tax time.
Utilise any government benefits
If you are entitled to a NSW Government-issued voucher such as Active Kids, Premier’s Back to School, Creative Kids or First Lap, ensure these have been activated before the end of financial year deadline.
Maximise your deductions
As an Australian taxpayer, you may be eligible for various deductions that can reduce your taxable income. Review your expenses and ensure that you have supporting documentation for each deduction you plan to claim. Some common deductions include work-related expenses, self-education costs, and charitable donations. Seek advice from a qualified tax professional to make sure you're claiming all the deductions you're entitled to.
Consider making additional contributions to your superannuation account before the end of the financial year. These contributions may be tax-deductible and can help boost your retirement savings while providing potential tax benefits.
Capital gains and losses
If you've sold any assets during the financial year, review your capital gains and losses. Capital gains tax may apply, but you may also be able to offset these gains with any capital losses you've incurred. Consult with a tax professional to understand the implications and optimize your tax position.
Small business considerations
If you run a small business, the end of the financial year is a critical time to assess your business's financial health. Review your cash flow, inventory, and outstanding invoices. Consider writing off any bad debts or obsolete stock to improve your financial position. Ensure that your employees' superannuation contributions are up to date and that you meet your obligations as an employer.
Lodge your tax return on time
Australian taxpayers have until October 31st to lodge their tax returns for the previous financial year. Aim to lodge your return as early as possible to avoid any last-minute rush or penalties. If you're using a tax agent, they may be able to assist you with lodging your return and provide valuable advice.
Seek professional advice
If you're unsure about any aspect of your financial situation, seek guidance from a qualified accountant or financial advisor. They can help you navigate complex tax laws, maximize your deductions, and provide tailored advice based on your specific circumstances.
The end of the financial year is a good time to reflect on your financial progress, make necessary adjustments, and plan for the future. By following this checklist, you can streamline your financial affairs, minimise tax liabilities, and set yourself up for a successful year ahead.
Remember, seeking professional advice is always beneficial to ensure you make the most of the opportunities available to you. If our team can be of any help to you, please contact us. We have branches in Wollongong, Albion Park, Bega, Bermagui, Merimbula, Nowra, Thirroul, Moruya, Ulladulla and, soon, Berry.
* Disclaimer: This blog post provides general information only and should not be considered as financial or tax advice.