5 tips to get yourself sorted for the new financial year

Did you know that you can make additional contributions to your superannuation fund to reduce your taxable income? You can do this no matter if you’re PAYG or self-employed. So, if you’re in one of the higher tax brackets, it may be worth discussing with your financial adviser if this is the right move for you.

Just note that there are different rules if you’re over 65 or earn over $250,000, and there are limits to how much you can add based on the balance of your superannuation fund - so make sure you do your research first.

Need a new work laptop, vehicle or office chair? If so, now could be a good time to think about replacing them. This is because you may be able to deduct some or all of the cost in your tax return. 

Remember though, if you use the equipment for personal use as well as work, you’ll need to apportion the amount you claim.

From car logbooks to gathering evidence for your claims, now is the time to make sure your records are up to date. 

If you keep a logbook to claim back tax on work-related car use, it’ll need to cover at least 12 consecutive weeks. You’ll also want to make sure you have your receipts as evidence. Haven’t been logging your travel? You could use the cents per kilometre method instead.

Now is also a good time to collect receipts and any other evidence you need for other claims. Evidence needs to be kept for at least 5 years from the date you lodge your tax return - so don’t throw it away after you hit submit!

Made capital gains on your assets this tax year? Well, you may want to evaluate your assets as a whole. Any assets that made a loss this year could potentially be sold to reduce your capital gains exposure, if it’s the right time to do so. 

Note that you may have access to a 50% capital gain concession if you’ve held the asset for more than 12 months.

While you’re already assessing and prepping your finances, now could be the perfect time to make sure they’re in the strongest position possible. 

• Review your bills: make sure you're getting the best deal possible on electricity, gas, internet and your mobile phone. 

• Cancel unused subscriptions: paying for a streaming service you never watch or a gym membership you never use? Now is the time to cancel and save yourself some money.

• Reorganise your debts: have multiple credit cards and Buy Now Pay Later accounts that you’ve lost track of? These kinds of debts can snowball if left unchecked. You could think about paying them off with a debt consolidation loan. This will help you actively pay off what you owe and only give you one monthly repayment to manage.

Finally, it’s always a good idea to check the latest guidance from the Australian Taxation Office (ATO). Although lots of us have filled out a tax return many times before, the rules do change. The ATO website is where you can check the latest guidance on tax returns for individuals and families.

Prepped and ready to go? Great. You’ll need to lodge your tax return for the tax year just gone by 31 October the same year, but the sooner you get it ticked off your to-do list, the better.

Disclaimer

This content is for informational purposes only and does not constitute financial advice, nor should it be relied upon as such. Readers should seek independent professional advice tailored to their financial situation before making any decisions.