Cost of living: How to beat the budget in the EOFY sales

Traditionally, the two weeks before the end of financial year is the best time to grab a bargain in the EOFY sales. But before you do, read the retail tricks to save time and money.

Time to go shopping and grab a bargain in th EOFY sales.

We all love a bargain and the thrill of a great deal, and really, who wants to pay full price for anything these days? With inflation and interest rates rising, anything that reduces the cost of living can be worth it.  

Despite the impending gloom for mortgage holders, a survey by the Australian Retailers Association (ARA) and Roymorgan.com.au says we’re set to spend some $8.8 billion by June 30 in the End of Financial Year (EOFY) sales.

The prices on everything from sofas and beds, tech gear, cars, travel, homewares and fashion are heavily discounted in what is one of, if not the, biggest sales events of the year. And there’s many reasons you should hit the shops, such as tax refunds, although the ARA expects that just over half (52 per cent) of all purchases will be online this year. If you buy smart on income-related essentials you can claim it back as early as next month. Winning.

Shop smart in the EOFY sales, by doing your research before you buy.

Savings on expensive items, that you actually need, such as an energy-efficient new fridge or washing machine, as well as buying early for Christmas can keep you ahead of your budget too.

“The mid-year sales are a great opportunity for consumers to pick up a bargain as retailers look to clear out their excess stock,” says ARA chief executive Paul Zahra.

“Expect to see prices slashed on items from fashion, shoes and accessories to electronics, bedding and homewares as retailers make room for their new-season lines to start the next financial year. With tax time around the corner, savvy consumers will also be on the lookout for work-related products which they can then claim from July 1, so we expect products such as computers, phones and tablets to be popular purchases.”

Do your sums, check your budget before you shop.

STAY ON BUDGET

On average, consumers will spend approximately $1420 in the sales, says ARA’s Paul Zahra. More than ever though, sticking to a budget may be a necessity, so before you overspend, think whether it’s something you want or something you need. If it’s the latter, go for it.

 Like Christmas presents for the kids. Buying during sales can avoid the world of financial pain come Christmas time and also gives you time to pay it off, as you can manage.

 “If you’re struggling to save money, shopping around for better deals on some of your regular expenses is a good place to start,” says Sarah Megginson, senior editor of money at Finder. “It’s critical to know what’s going in and out of your account, so you can budget accordingly.”

Don’t forget to check appliance energy ratings.

BIG DEALS

Major appliances such as fridges, washers and electronics including TVs are among the most popular purchases during EOFY, says Greg Wilson, general manager, home appliances at The Good Guys.

 “With savings across almost every category, it’s the perfect time of year to splurge on the things you need or the things that need upgrading,” he says.

 However, while a big-ticket item may be hugely discounted, it’s not necessarily a true bargain if you haven’t done your homework and checked the product’s running costs and energy ratings, adds Choice editor Marg Rafferty.

 “Don’t let your EOFY bargain come back and bite you in the form of a bloated energy bill,” she says. “Take time to consider the most energy-efficient option for each of the products on your EOFY wish list.”

Marg says knowing which product you want in advance can help you avoid getting caught up in the buzz of a bargain or ending up with an inefficient cheap appliance. Check energy ratings, she adds.

Look for reward points, cashback offers and free shipping.

SHOP SMART and DOUBLE DIP

Look for offers with cashback rewards, incentives like free shipping and rewards points when buying up big, so shop around and choose wisely is the big tip. Also, make sure you look at the returns policy, refund options and warranties.

“Considering how many retailers are running sales, you shouldn’t make any purchases without looking around a number of websites to ensure you’re getting the best possible deal,” says Sarah Megginson, of Finder.com.au.

And before you rush out, go through your home, room by room, and make a list of what requires an update, adds Temple & Webster’s Selma Nada Rajah.

Buy wisely, says Selma, on gadgets that can save money in the longer-term, such as coffee machines, juicers and airfryers, and make at home rather than ordering a takeaway.

“Power bills are set to surge so it’s worth investing in things to help you stay warm and comfortable: think wool rugs to insulate your home; mattress toppers to keep you cosy at night,” she says.

Home office essentials can be tax-deductible, but always check the Tax Office rules.

TAX ADVANTAGES

One of the biggest incentives of EOFY is purchasing goods that you can claim as a tax deduction, literally straight away. But, make sure it’s actually tax-deductible before you fork out big dollars – and make sure you keep the receipt. Expenses must relate to your work, such as laptops, printers, a new desk or office chair if you work from home. It’s always wise to read up the tax office guidelines before you buy.

 “With many of us working remotely, our current devices no doubt have seen greater use at home than ever before – making lots of us realise it’s time for an upgrade. If that’s your case, then there’s no better time to get yourself a new laptop,” says George Panagiotidis, general manager, Tech at The Good Guys.

If you need to upgrade your tech equipment, EOFY sales can be a good time to buy. Picture supplied by The Good Guys

HOME BARGAINS

If you’re wanting to bag a bargain for the home, you’re currently in luck. Home appliances, smartphones, laptops and tablets, televisions, soundbars and headphones, and smart home devices are what you should look for.

“If the appliances in your home are feeling a little tired, EOFY is a great opportunity to get massive savings on new appliances you,” says George.

Or make your home smarter.

“If you’re wanting to update your living space into a smart home without breaking the bank, EOFY is the time to get a good deal. Whether you want to personalise and control your lighting, stream music and videos or secure your home.”

Originally published as Cost of living: How to beat the budget in the EOFY sales