It’s that time of year again where you’re probably pulling your winter clothes out from storage, covering up the BBQ and battening down the hatches in preparation for winter. Whilst this is all going on though, it’s important to remember that there is serious business to attend to which can save you lots of money in the form of rebates as we approach the end of the financial year.
If you haven’t yet started then now is the time to begin getting all your financials in order. Start by counting up those disregarded dollars and checking that your accounts are in order, because if you do things correctly it can save you a heap of money. Below you will find a to-do list of some of the most important tax rebate tasks that you should be completing before the financial year ends.
EOFY Shopping Spree
If your purchases are tax deductible then going on a massive shopping spree in the EOFY sales can drastically bring down your taxable income. Those shoes, that new laptop, that suit or the latest mobile device may suddenly have become well within arms reach. All you need to do is to remember to keep your receipts.
Electricity and Gas
As the winter closes in and those bills for heating and gas begin rising, it’s time to check over your current energy provider's various plans to see if there is money that can be saved. Recently, I wrote an article about a new energy provider that’s taking the industry by storm due to their flexible plans and their ability to sell energy at wholesale prices (who go by the name of Mojo). You could start by looking through their offers and seeing whether they're available in your area.
If you need a new vehicle and plan on buying an SUV, for example, as your end of year purchase then make sure when buying it that you sort yourself out with a really good insurance plan so that you are covered for the year ahead.
Go Junk Food Free
If you are the kind of person to grab a coffee before work or potentially a snack on the way home from the office then now is the time to ditch the habit and save yourself a bunch of dollars in the process. Take that money which you spend on "junk" and put it into something that is tax deductible instead, Not only will your health benefit, but your financial rebates will too.
While we're dotting all the I’s and crossing T’s of preparing tax rebates, we might as well cover everything and that includes your home loan. There is no denying that interest rates are currently low, so use this as a a good opportunity to review your current mortgage. In light of the rate cutting action in the past 6 months the likelihood is that a couple of better deals have reared their heads. If you can, also try to trim the fat from your repayments in preparation for the new financial year.
If your earnings are less than $140,000 per year ($280,000 for families), then you’re most likely eligible for a private health insurance rebate. That’s right, just in time for flu season. Don’t forget that you can claim in advance and knock down the price of your insurance premium or alternatively you can claim it as part of your rebate in the tax return.
That nest egg could always do with little more plumping up and making that happen before June 30th is important. Make a personal contribution to your superannuation and you can claim it back as a tax deductible expense. Additionally if you opt for salary-sacrifice contributions then you will be taxed at a much lower rate compared to normal super rates. Check the Australian Tax Office website because you may also be eligible for an extra $500 in the form of government co-contributions too.
A Financial New Years Resolution
Going through your accounts, you will probably find some mistakes or imperfections which mean there is always room for improvement. Perhaps your budget missed the mark or you left your money to languish in a below average account? Whatever the situation is, make a Financial New Years resolution and promise yourself to rectify any areas that you can improve on in the New Year. At the end of the day, whatever it is, I’m sure it’s easier to do than going to the gym every week like you said you would as part of your resolution at the start of January.