Tips to make the most of the end of financial year

As we say goodbye to 2022-23, now’s the time to do stock take of the past financial year and check in on things like tax, super and insurance.

While the end of financial year can often feel frenzied, a few simple tasks can help close off the past 12 months and prepare for a productive new year.

There are several things you can do yourself, such as sorting out tax and super, but you can also choose to engage an accountant or a financial planner if you’d like a bit of extra help.

We’ve put together a checklist as a starting point.

1. Start preparing your tax return- and don’t forget deductions

If you’re an employee, you’ll likely receive an income statement. These days, they’re often sent straight to MyGov. Your statement lists how much you’ve earnt over the past financial year.

However, it won’t account for the work-related deductions you may be eligible to claim. These are expenses linked to your job. For example, if you’re a police officer, you may be able to claim the cost of cleaning clothes you use for work, tools you need for your job (that work doesn’t supply) and car expenses, if you have to use your own car during a shift.

While you can’t lodge your return until the new financial year, getting a head start on deductions and expenses may expedite the process when the calendar ticks over.

2. Make sure your super is in shape

Employee super payments are usually made automatically, and the end of financial year is a good time to check whether the money that’s gone into your retirement account is correct. If not, you can follow up with your employer.

Similarly, you may choose to make additional contributions. Sometimes, these can reduce the amount of tax you have to pay. Examples include:

• Personal super contributions – You can sometimes claim a deduction if you make contributions up to the concessional cap, which is $27,500 (inclusive of payments your employer has made).
• Spouse contributions – If you put money into a lower-earning spouse’s super account, you may be able to claim a rebate of up to $540.

The end of financial year can also be a good time to think about setting up a salary-sacrifice arrangement. It involves putting some of your salary into super instead of in your bank account, which reduces your taxable income.

3. Create a new year budget

The new financial year is a great time to plan for the next 12 months. For some people, that may involve a bit of a stock take of expenses and a plan for what to invest in and what to avoid in 2023-24.

Simple budgets can be created using Excel spreadsheets, but if you’d like something more comprehensive, you can also consider financial advice.

4. Keep on top of insurance

Is your insurance still fit-for-purpose? It’s not uncommon to end up with a policy that no longer fits your needs.

The new year can be a good checkpoint for looking at your health, life, car, home and general insurance to make sure they still tick the right boxes. When it comes to general insurance, we’ve partnered with Allianz Australia to offer insurance with features and policy options that you can choose to suit your lifestyle and budget.

If you’re looking for a bit of extra help, you can speak to a Chelsea Wealth financial planner to help you set up a plan for the new year and beyond.