The end of financial year is almsot upon us, and we have some help to relieve the stress of last-minute preparation come 30 June. Damon Rasheed, CEO of rate comparison site Rate Detective has given us some great tips to get our finances into shape:
Leave it to the experts
Don’t prepare your own tax return. You WILL miss opportunities to claim deductions, as there will be things you could miss and would not have claimed if not for their advice.
It’s important to understand that not all accountants are tax experts, so make sure they are before consulting with them come tax time. Be sure to have all of your paperwork ready and remember, their fees are tax-deductible!
Benefit from salary sacrifice
The best savings come from careful long-term planning. There are great benefits to be had for many people, at all income levels in a salary sacrifice agreement.
Try to sacrifice some of your earnings into tax free benefits. These can include laptop computers, PDA’s and electronic diaries, interest on a rental property, seminars and courses related to your employment, car operating expenses and so on.
Consider income protection
If serious injury or illness strikes, how do you keep paying the bills and living the lifestyle that you have become accustomed to?
No one is invincible and Income Protection is one of the best and most important types of insurance you can take out. The reason for this is that you could receive up to 75% of your salary should you become unable to work due to unexpected illness or injury. You can then use these payouts to cover your regular bills and expenses, such as rent or mortgage.
Consolidate your super
Most young Australians don’t care about their super, due to the fact that accessing the money is so far into the future.
Unfortunately, with this attitude, you may not have enough savings to retire comfortably. The good news is that it doesn’t take much effort to get it in order.
Countless clients come to Rate Detective with multiple super funds. What they often don’t know is that each super fund is charging default management and insurance fees that are eroding their balance.
By consolidating your entire super into one fund, multiple fees can be avoided. Finding lost super is a free service that Rate Detective offers. Visit here for all of the info.
It’s also important to ensure your employer is contributing to your super correctly. Ask your accountant to look over this with the rest of your finances; after all, it’s your money!