The months of May and June are a good time to ensure that you are well planned for when June 30 arrives. As well as being a tax strategy time, the EOFY period is a smart time to review your business and personal financial situation.
Taking action now will ensure you maximise your current position and start the next financial year with a clear mind and a steady hand.
Five Ways to Prepare Now:
1. Tax Planning
Talk to your accountant. There are tax-related matters that are based on a cash basis of accounting that cannot be completed post-year-end. Be sure to review and communicate your activities since July 1 last year, and know exactly what tax deductions you can claim.
You can help your accountant by being proactive and gathering all of the documents they will need to prepare your tax returns on a cost-effective and timely basis.
2. Superannuation & Investments
Ensure you are taking advantage of the opportunities that may be relevant for you across superannuation or other investments. Especially with markets bouncing all over the place at the moment. If you own investment property, ensure your property depreciation is in order.
There are tax changes each year that you need to be aware of if they impact these decisions, including the sale or purchase of investments. The 2026/2027 changes to policy regarding Capital Gain Tax and Negative Gearing are areas where many will need to seek advice from their accountant or property team.
3. Compare Actuals with Forecasts
Review your personal "P&L" for the year. Verify your total income and check expenditure (there are now many online tools to help you do this easily). It is a great time to review the results, change your habits and create a budget and/or financial goals for the following year.
4. Review your Mortgage & Insurances
This is an excellent time to review your current mortgage finance and personal insurances to make sure that they are still suitable for your needs. Talk to your Finance Partner about any possible lending repricing. If you are looking to pay interest in advance, you had best get organised now.
5. EOFY Tips for Business Owners
For those operating a business, there are additional considerations too, including the current tax incentives for asset acquisitions as these purchased must be actioned before 1 July. Talk to your business advisors now about your business goals to identify areas for improvement for the financial year ahead.
When looking at your profit & loss projections, make sure you allocate budget to pay yourself at market value. Setting up direct debits to loan repayments, investments and superannuation or SMSFs are all good ways to manage your funds effectively.
Contact MCP
1300 510 816 or your Finance Partner
enquiry@mcpfinancial.com.au