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The end of the financial year is more than just about starting to sort out your tax returns. You may cut your tax bill and give your super a boost with a few smart moves.

Nobody pops the sparkling at 12am on 1 July while cheering, “happy new financial year!”

The thing is, there are benefits to not only thinking about the end of the financial year but also making moves with your money. Here’s what you need to know.

Maximise your tax return

Sure, the end of the financial year is the time we start to think about taxes. This includes getting our receipts organised and remembering which charities received our donations.

Having your deductions ready for the 2021-22 financial year ready will make it quick and easy to file your return and help get back more of your money.

While it’s tempting to count everything as a deductible expense, not everything may be.

Appropriate deductions can include:

  • Work-related expenses: Things that directly relate to how you earn your income but are not reimbursed and you have spent the money yourself. This may include travel, clothing, laundry for work uniforms, conferences, or books. Keeping track of your receipts during the year will keep you from scrambling and possibly missing some value.
  • Investment expenses: You may be able to claim a deduction for expenses you incur earning interest, dividends, or other investment income.
  • Home office expenses: As more of us work remotely during and after pandemic restrictions, costs can be deducted (provided you meet the eligibility criteria), including a portion of your internet and energy bills. The ATO introduced temporary shortcutting methods that have been extended through 30 June 2022, making it easier for most people to apply for the deduction without citing specific examples.
  • Other deductions: You can deduct things such as charitable donations and gifts, some insurances and the cost of hiring a tax agent.

To learn more about what might be tax deductible, visit the ATO's website.

You typically have until the end of October to lodge your tax return if you’re doing it yourself. If you’re using a tax agent, you will have a bit longer. That’s not an excuse to procrastinate! The sooner you file, the sooner you may be able to get your refund.

Boost your super with a voluntary contribution

Extra cash burning a hole in your pocket? Putting it into your super can help you increase your balance for the future while making you eligible to claim certain tax benefits. This can help make the amount you invest do more.

Every little bit can help you build towards a more comfortable retirement.

  • Personal tax-deductible contributions: You can make contributions from your take-home pay or savings to your super account before the end of the financial year. This will allow you to claim a tax deduction on your return by lodging this notice of intent form.
  • Downsizer contributions: If you’re over 65 and meet some of the eligibility criteria such as selling your primary Australian residence you have owned for 10 years or more, you may be able to contribute $300,000 to your super account and receive beneficial tax treatments. It's important to note that from July 2022, the Downsizer Contributions age will drop from 65 to 60. Visit the ATO website for more information.
  • Spouse contributions: If your spouse isn’t working or is a low-income earner, you can make contributions to their account on their behalf and you may be eligible for a tax offset. It’s best to speak to your tax agent or financial adviser for details on this.

Learn more about boosting your balance.

Don’t leave things to the last minute. Some funds take time to apply contributions and have a cut-off date about one week before the end of the financial year.

Review your finances and expenses

While you’re pulling together receipts for tax time, it may be a good idea to review all your various expenses, including utilities and other regular bills such as internet and streaming services. Look for ways to get a better price for similar services; transferring services can be tedious but it can make a big difference to your monthly budget!

Setting up a budget to help you review and reform your spending habits is a tough task. Nobody likes to be told they spend too much on coffee! Taking a longer view of how and where your money goes, however, can help you find ways to cut down unnecessary spending, freeing up more money for things that you really want.

Set up an emergency fund

Nobody likes paying into a rainy day fund – until it starts raining. You never know when a major cost will hit you, like a car repair, medical bill or unplanned travel. Having a pool of money that you contribute to regularly – a separate account that is only for emergencies – can be an amazing help if you need it.

What you need to know

Any advice on this website is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), and is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the relevant product disclosure statement and/or policy document, available from Resolution Life at resolutionlife.com.au or by calling 133 731, before making a decision on whether to acquire, or continue to hold, the product. 

The Target Market Determinations (TMDs) for our financial products (where applicable) can be found at Target Market Determinations (TMDs). The TMDs describe the key features and attributes of an applicable product that affect whether it is likely to be consistent with the objectives, financial situation and needs of consumers in the target market.

Resolution Life is part of the Resolution Life Group and can be contacted via contact us or by calling the phone number mentioned above.