Your checklist of what not to do this EOFY

For many people the end of financial year (EOFY) can have a frantic vibe about it – perhaps it’s the overwhelm of suddenly having to sift through receipts, super and tax deductions that they’d been meaning to tend to months ago. June 30 can be a great motivator to get organised, but it can also lead to rushed decisions. So while there’s still time before the end of June, here’s a reminder of five things you don’t want to be doing this EOFY:

1. 1. 1. Don’t leave everything until the last minute.
         Like most things that require effort or planning in advance, the EOFY rewards preparation, not panic. Super contributions, donations and paperwork often need more time than people expect, so it’s usually a case of the earlier you can start, the better.
      2. Don’t chase a deduction without a proper strategy.
         Sure, a tax deduction sounds good to most people, but spending money just to save tax, doesn’t necessarily put you ahead. Keep in mind that a good financial decision should still make sense after the tax benefit is stripped away …which leads to my next related point…
      3. Don’t focus only on tax, ignoring the bigger picture.
         EOFY is also a good opportunity to review cash flow, debt, insurance and make sure your investments still match your goals. Think about what could help you with your overall financial strategy – the first step might be to make an appointment with your tax professional or meet with a financial adviser to gain clarity for the new financial year.
      4. Don’t forget that super has rules and deadlines.
         Contributions can be powerful, but caps, eligibility and processing times still matter. If you make a contribution too late it may not count for the year you intended, so check with your Super fund to be clear about the cut off dates.
      5. Don’t assume a refund means you’ve done well.
         A tax refund can feel like a win, but it’s not the full story. What matters more is whether your overall plan is working for you.

The good news is that most EOFY mistakes are avoidable with a little planning, so if you’re reading this any time before June 30, here’s a friendly reminder to get started and seek help early on if you need it.

For professional advice to start the new financial year with confidence, call me at Align Financial on (02) 9913 9995.