Time is flying by, and we’re halfway through the financial year.

June will be here before you know it, so now is the perfect opportunity to review what you need to get organised before tax time hits.

Lower your taxable income

Waiting until June to make choices that lower your taxable income can feel rushed, making you more likely to make purchases or decisions that aren’t in line with your goals.

It’s a good idea to chat to your Accountant and Financial Adviser now about the things you can do over the coming months to reduce the tax you have to pay, including:

  • Making any job or business related purchases
  • Making additional payments into your super fund (and the best way to do this)
  • How to deal with an end of financial year bonus that might adversely affect your taxable income
  • How to handle your investments in this second half of the financial year

Organise your receipts

While you don’t need to declare the year’s expenses until the tax year is over, leaving the task until the last minute can make things difficult.

Take this halfway point as an opportunity to sort out the last six months of receipts and expenses, and ask your Accountant about any new expenses you have. This can make the end of financial year run much more smoothly.

Changes you might not know about

There may be some changes to tax law and deductions this financial year, which you aren’t aware of. Ask your Accountant and Financial Adviser if any of those affect you, and how you can make them work to your advantage.

Plan your superannuation payments

At this halfway point, you’ll have a good idea of what your income will be for the year. This makes it a good time to talk to your Financial Adviser about your Super.

Some questions to consider include:

  • Can you make super contributions that will lower your taxable income?
  • Should you consider a salary sacrifice into your super fund?
  • Will you be entitled to a government co-contribution if you make an after tax contribution?
  • Should you make super payments for your spouse?
  • What is the cut-off date for making relevant super payments for the financial year? (Leaving this until June may be too late to achieve the outcomes you need, so this is a good time to plan ahead.)

Review insurances

Whether you run your own business or you’re an individual keen to protect your income, this is a good time to ask for advice about your level of insurance coverage. Ask things such as:

  • Do your insurances adequately cover your risks?
  • Should you update your insurances to help you get the best out of this financial year?
  • Can you compare the best insurance deals that are currently available?

Timing is everything

Leaving things until the end of the financial year can come back to bite you, so ask your Financial Adviser how else you can prepare ahead.

Disclaimer: This article is not legal or personal financial advice and should not be relied on as such. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. You should obtain financial advice relevant to your circumstances before making investment decisions. Where a particular financial product is mentioned you should consider the Product Disclosure Statement before making any decisions in relation to the product. Whilst every reasonable care has been taken in distributing this article, Australian Unity Personal Financial Services Ltd does not guarantee the accuracy or completeness of the information contained within it. Any views expressed are those of the author(s) and do not represent the views of Australian Unity Personal Financial Services Ltd. Australian Unity Personal Financial Services Ltd does not guarantee any particular outcome or future performance. Taxation Information in this document should not be relied upon without seeking specialist advice from a tax professional. Australian Unity Personal Financial Services Ltd ABN 26 098 725 145, AFSL & Australian Credit Licence No. 234459, 114 Albert Road, South Melbourne, VIC 3205. This document produced in December 2018. © Copyright 2018