Get a head start on your taxes

Now is the perfect time to start organising your financial affairs to make sure you are on top of tax time this year. Here are our top tips for preparing for 30 June.

Now is the perfect time to start organising your financial affairs to make sure you are on top of tax time this year. Here are our top tips for preparing for 30 June.

1.    Seek expert advice
Make time to talk to your financial adviser or tax specialist. If you’ve had high income or sold an asset which has resulted in a capital gain this financial year, then you may be facing a fairly large tax bill.

There may be things you can do now to reduce your taxable income before 30 June. Remember, fees for ongoing financial and tax advice may be tax deductible.  

2.    Sort out your statements, receipts and expenses
Having all your information at hand will help your year-end preparation. View our tax return checklist to see what information you will need.  

Many of us leave the collection of dividend and bank statements, receipts and expenses to the last minute. Make time to organise your documents earlier, or better yet, implement a system that manages this task throughout the year. It could be as simple as a shoebox for receipts or an app on your phone.

Whatever system you choose, if you get in the habit of keeping your records organised during the year, completing your return will be much easier.

3.    Consider pre-paying expenses
Certain expenses such as the interest expenses on an investment loan, or your income protection policy premium can be brought forward by 12 months and prepaid in the current financial year. Prepaying eligible expenses will enable you to claim the deductible expense against this year’s accessible income.  

4.    Check your super
Depending on your situation, it may be worthwhile topping up your super. There are new rules coming from 1 July that impact how much you’re allowed to put into super. If you would like to learn more, visit our Super changes July 2017 article.

5.    Be generous
If you have been thinking about giving to charity this year, prior to 30 June is a great time to do so. When you donate to a charity or Deductible Gift Recipient your generosity not only provides financial assistance to others, but can also entitle you to a tax deduction.

When it comes to planning for the end of financial year, the trick is not to leave it to the last minute! A little bit of preparation now can save you time and money. 

If you would like some more hints and tips on how to manage your taxes, print out our tax return checklist.

Reference: Financial Knowledge Centre

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