With the end of the financial year just around the corner it is the perfect time to review your financial health. The recent lock-down period has given us a chance to slow down and focus on what’s important in our lives.
Many of you have probably taken the opportunity to get fit and healthy (others may have done the opposite), but have you recently taken the time out to review your financial health? We know, it’s probably the last thing on your list, but some small steps along the way can help the longer term hip pocket.
Review your subscriptions
Have you reviewed your credit card statements recently? Check out the number of active monthly subscriptions you are paying for that are providing excuses for not getting around to doing all those things on that checklist of yours.
- Gyms have not been open for use – request refunds, credit for the future, or better yet, now that you’ve learnt to live without one, cancel all together
- NetFlix, Stan, Apple TV, Kayo, Foxtel – surely you have binge watched everything possible over the COVID-19 break… Cancel!
- Mobile and Telephone packages – request package bundle options or just ask for a better deal, or switch provider
- Mobile Apps – most are free to sign up, then activate your credit card after a period of time without you realising the trial period is over. Use it or cancel it
Tax Benefits on Tech Equipment Upgrades
Consider upgrading equipment if no longer effective or efficient, particularly if you are working from home or running a business where immediate tax write off provisions allow a deduction in the year of purchase.
We specifically note: if you don’t need it, don’t spend it. The ATO are not going to reimburse you for the full cost of these expenses.
Tax Benefits on Home Office Expenses
This year the ATO have announced a special “short cut method” for claiming your work from home experiences for the period between 1 March and 30 June 2020. If your accountant is not asking for home office use hours in preparing your tax return, they are doing you a disservice.
Don’t forget your retirement. Superannuation can be a great way to get tax relief and still build your personal wealth. Your personal or company sponsored contributions need to be received by the fund before 30 June to be deductible and a notice of intent form completed and lodged.
If retirement is too far away to think about right now and you have hit some significant cash flow road blocks during COVID-19, consider the temporary early release access of your Superannuation. You can access up to $10,000 prior to 30 June 2020 and up to another $10,000 before the end of September 2020.
Review Your Accountant
Our list wouldn’t be complete without this one.
If your accountant is still that boring old person trying to charge you for every 6 minutes, it’s time to upgrade.
In our opinion, it is unethical for a lazy accountant to charge you more, simply because their systems and methodology is old school and inefficient or they are not up to speed with the tax law and have to research it all the time.
Although we specialise in private family businesses, we’re happy to share our knowledge for you to quiz your accountant and keep them on their toes.
New Financial Year – time for a change.