March is that time of year that, as a financial adviser, I’m inclined to encourage people to start thinking about tax time. Sure, it still feels a little early. And – I get it – preparing tax documents isn’t most people’s idea of a fun. But if you find yourself with a little extra time this month, here are three tips to put you ahead of the curve for when 30 June rolls around (which, let’s face it, is usually before you know it).
Get your records in order early
March is a good time to start putting together the paperwork you’ll need to do your tax. Ok, some documents may not be available until after 30 June, but you can still start on your tax-time to-do list, which could include tasks like gathering receipts, invoices, work‑from‑home logs, investment statements and private health insurance documents so you’re not scrambling in June.
If you do your tax online (e.g. through the MyGov portal) the Australian Taxation Office (ATO) will often pre-fill at least some of the information in your tax return, but having your own records prepared and at the ready can mean fewer delays and smoother processing when it comes to lodging your tax return. (And that applies whether you’re doing your own tax return or have a tax professional do it for you.)
Review deductions before 30 June
Remember that deductions only count if they’re legitimate, necessary and are directly tied to earning your income – or if they’re donations made to a registered charity that’s listed as a deductible gift recipient, or DGR[i].
To plan ahead, you may consider topping up your super with concessional contributions, booking in any work‑related training, or replacing tools and equipment you genuinely use for your job. By taking steps now, you’ll have more time for decisions and avoid rushing to meet end-of-financial-year obligations.
Check Your Overall Tax Position
Beyond deductions, it’s worth taking stock of your broader tax picture. For example, have you earned extra income from a side gig, investments or property? If so, you may be heading toward a tax bill – so consider adjusting any PAYG instalments or setting aside funds to help ease any future payments.
In short, preparing early for tax time is a habit that can help you avoid any unwanted surprises come tax time. It allows for better record-keeping and may facilitate a smoother, more stress-free lodgement.
If you need professional financial advice before the busy end-of-financial year period, book an appointment with me at Align Financial. Call (02) 9913 9995.
[i] To check whether a charity is a deductible gift recipient, do a search on the Australian Charities and Not-for-profits Commission (ACNC) website: https://www.acnc.gov.au/charity/charities
