How to be prepared for End Of Financial Year (EOFY)
Tax time is just around the corner, so finding a tax expert now could be the key to getting your tax back quickly and accurately this year.
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The June 30 deadline that marks the end of the financial year is fast approaching, making now a great time to start getting prepared to lodge your tax return from July 1.
It’s also the perfect time to check in with your finances and use this as an opportunity to give them a refresh mid-year to see where you could be saving some extra dollars, especially with the higher cost of living putting pressure on household budgets.
Finance expert Vanessa Stoykov shared a few key tips with us on how you can make the most of this time of year.
1. Find a registered accountant or tax agent
“Most people won’t know all the changing tax laws, so it’s really good to hire an expert to do that,” Ms Stoykov said.
According to H&R Block, 74% of Australians use a tax agent to help them complete their tax returns.
And did you know, accounting and tax agent fees may be tax deductible? The Australian Taxation Office says you can claim a deduction for any expenses you incur as a result of managing your taxes through a registered agent.
Tax agents may also be able to expedite your claim, meaning you could get cash back in your pocket sooner.
Ms Stoykov recommends asking friends and family for recommendations of good accountants or tax agents in your area, and said you could also check accountants’ websites and look for their registration number.
The Australian Government has a website that can help you find a registered tax practitioner near you.
2. Find your receipts
Now is a good time to start gathering together your receipts and checking the ATO website to see what you could claim from July 1.
You might be able to claim a percentage of your fuel if you use your car for work, or even the costs incurred from a social event you attended for work.
Ms Stoykov said the ATO will be looking out for dodgy claims again this year, which is where a tax agent or accountant can really come in handy.
“You might do it (make a dodgy claim) unintentionally, which is why it’s better to use an expert because they’ll know everything you can claim,” she said.
“And it’s quite surprising how many things you can claim.”
3. Shop around to see where you could be saving money
“As it’s coming up to end of financial year, treat it as a new year for you to say, ‘okay, where can I save more?’” Ms Stoykov said.
“If you’ve been in a relationship with energy, phone or anything like that, it does pay to shop around. There’s no harm in asking [if there’s a better deal].”
Try to find a cheaper energy deal
She said to take a look at all your streaming platforms, the apps you subscribe to and other entertainment – you might find services you’re paying for but aren’t even using anymore.
The finance expert recommends picking one household bill each week to tackle between now and the EOFY, so by the time you reach the end of June you’ll have attacked most of your comparing and made saving money more manageable.
One thing you might consider is fixing your current energy price before July 1, when energy retailers in Queensland, New South Wales, South Australia and Western Australia are set to make price adjustments. Or, you could wait it out to see if any better deals become available towards the end of July.
You could also use this time to compare health insurance given health funds have been changing their premiums at varying dates throughout this year, so you might still be able to nab a deal.
As a bonus, you could find you’ll avoid paying extra tax via the Medicare Levy Surcharge if you have an appropriate hospital cover policy by the end of the tax year.
“There’s every advantage to trying to find a better deal where possible, because the more you can get your overheads down with those fixed costs like energy and health, the more money in your pocket,” Ms Stoykov said.
Could you save on your health cover?
4. Use your tax return wisely
Thinking about how to save, spend or invest your tax return this year could be more important than ever with many people struggling under increasing cost of living pressures.
“There is a cost of living crisis,” Ms Stoykov said.
“Money is one of the biggest stresses we have. So anything you can do to give yourself peace of mind, do it.
“It might be that people use it (their tax return) for life expenses, but please put a bit aside for later just to cover yourself.
“Even if some of the money goes to your nest egg, like to your emergency savings in a high interest account. If you get $2,000 back, that’s two grand you didn’t have before and imagine knowing that you can have an emergency and you’ve got the money there.
“Don’t think you need a bigger TV or you need those boots or that handbag.”
Visit the ATO for more information
If you’ve done these steps and you still have more questions about how to prepare for lodging your tax return, you can check on the ATO’s website for instructions and also see what’s new for individuals to know about filing their return this year.
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