The increase in advertising materials letting us all know of the ‘unmissable’ sales on across the retail sector at the moment can mean only one thing… End of Financial Year. As tempting as these promotions are, sometimes these “deals” aren’t as good as they’re made out to be. It can be difficult to determine which purchases could have waited a little longer or don’t really save you the money they claim to.
In addition to the sales, the end of June also opens up windows to utilise offerings and end up giving you more back during tax return time. Below are some of our tips to ensure you’re making the most of this EOFY.
Things to buy
Yes, we know what it sounds like, spending money in order to save money. It needs to be said that obviously the best way to save money is to not spend it at all… but if you HAVE TO buy some items, make it these ones…
Cars – For those that need one, EOFY is the time to buy a new car! Due to manufacturers and their dealers aiming to complete targets before July 1, the aggressive discounting on majority of most sets of wheels is something almost guaranteed every June.
Big ticket electronics – For the same reason as above, big ticket electronics like entertainment systems and kitchen appliances have retailers offering large discounts in an effort to balance the books and clear out stock come tax time. Have a shop around and make sure you’re getting the best price.
Contribute to superannuation
Salary sacrificing and contributing to your super can minimise the amount of tax you pay, and obviously it also boosts your super balance (winning). Anyone earning up to $52,000 can benefit from paying extra money into their super by being eligible for the Federal Government co-contribution. The rate sits at 50c for every dollar voluntarily contributed and is capped at a certain amount depending on your income.
Donate to charity
Donations are tax deductable and can help with offsetting debt or maximising a tax return come July. Pick a charity you want to support and prepare to feel great about yourself while also helping your own finances.
Note: Only donations over $2AUD are tax deductable and you will need a receipt/record to claim.
Ask a professional
For most people, the talk of tax deductions, expenses and returns causes eyes to glaze over. Trying to navigate these waters without really knowing a lot about finance and taxes can be tricky without some professional help. Accounting fees are tax deductable, and they know all the ways to maximise your deduction amounts without you really needing to think about it at all.
Prepare for 2019
You may say this to yourself every year, but EOFY is actually a great time to prepare yourself for the following year. Wanted to claim more but didn’t have record of your deductable purchases? Now you know to keep that in mind. Left super contributions too late? Set up a recurring payment to allow yourself the benefits for 2019. Taking the time to plan out the next 12 months can prevent you from the stress of trying to organise your finances every June!
Content in this article is general in nature and does not constitute personal financial advice.