EOFY (End of Financial Year) is coming up!

In a time where stress, anxiety, worry, depression, and uncertainty are on the rise, planning, preparing, and taking action early can help you feel more confident and focused, especially when it comes to understanding your financial situation. I am currently assisting others in creating their financial plans for the next 3, 6, and even 30 years. EOFY can be different times across the world, however the same principles apply.

As an Accountant and former Tax Auditor, I always advise my clients to start their end-of-financial-year (EOFY) preparations well before the last quarter. Over the years, I’ve seen many individuals and business owners panic as they leave these preparations to the last minute, resulting in confusion and uncertainty. The repercussions can be significant, which is why it’s crucial to have simple, easy-to-follow structures in place to avoid unnecessary stress.

Today, there’s a wealth of free information available, so there’s no reason to struggle with EOFY preparations. June is always a busy month for accounting, involving tasks such as reviewing the books, ensuring consistency with the previous year’s data, and handling basic but essential steps like:

• Record keeping and compliance
• Identifying tax deductions
• Using a registered tax agent (I always use external agents for my books)
• Keeping up with tax changes for the new financial year
• Avoiding tax refund scams
• Reviewing your finances
• Reconciling payroll

You don’t have to wait until June to start preparing for EOFY in Australia. Here are some actions you can take today to ease the process:

For personal and family finances:

Check superannuation contributions year-to-date and consider changing your superannuation provider if advised by your Financial Planner.

• Consider personal contributions for yourself and/or your spouse.
• Look into spouse contributions for tax offset benefits.
• Prepay margin/investment loans before 29 June.
• Prepay Income Protection insurance premiums to bring forward tax deductions.
• Bring forward any medical costs to get tax offsets and double-check your entitlements.
• Prepay your private health insurance to benefit from rebates.
• Review other rebates such as childcare expenses, dependent spouse rebate, low-income rebate, and tax offsets for mature-age workers and senior Australians.
• If you have a capital gain, check other assets to see if you can trigger any losses to minimize gains.
• Defer bonuses or income until new rates apply in the new year.
• Review your salary packaging arrangements to ensure they’re within limits and correctly recorded.
• Be strategic with term deposits, ensuring they mature after the end of the financial year.

For other areas needing EOFY attention, create checklists for:

• Small/Medium/Large Organizations
• SMSF trustees
• Investment property landlords

By taking these steps, you can ensure a smoother EOFY process and avoid the last-minute scramble that so often leads to unnecessary headaches and heartaches.