The end of financial year is coming in fast, and that probably means one of two things to you.
- EOFY Sale
or
- Time to get things in order for the tax man.
If you’re thinking sales, then just remember that it’s only a bargain if it’s something you actually need and will use or wear. Don’t fall into the temptation trap and get blinded by the discount and the hype.
If you’re thinking that it’s time to get things in order for the tax man, then this can take a few different meanings, depending on your situation.
As a business owner, you want to make sure you’re aware of your likely tax position so you can invest in some capital equipment if you have excess profit, or keep some cash aside for tax bills. If you haven’t done so already, make an appointment to see your accountant.
As a property investor, make sure you have a depreciation schedule on your property/ies so that you don’t miss out on deductions. If your property needs work, it may be worthwhile getting them done before 30 June so again, you can make those deductions. If next year is likely to be a more profitable year for you, then you may want to put a maintenance/repairs schedule in place for the coming financial year.
If you’re planning on buying a property in the coming year or two, remember that the lender will most likely want to see your tax return for the past couple of years. So don’t delay in getting your tax done and don’t maximise your deductions if it’s going to diminish your financial position.
If you have credit card debt, a tax debt or HECS debt or any “buy now, pay later” debts, clear them as fast as you can.
As always, seek advice from a financial planner or accountant before you take action.
And remember that even though our hip pocket doesn’t like it, paying tax is a good thing. It means you’re making money and contributing to our society.
