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Get your finances sorted for EOFY
June 5, 2024
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EOFY is just around the corner (gasp!). If that statement feels like a jumpscare, you’re probably not prepared. It pays to keep on top of your finances throughout the year so that EOFY goes smoothly when it inevitably rolls around. But, not everyone does.
If that’s you, it’s not too late to tear your head out of the sand and get prepped for EOFY. You can save time, stress and hassle by starting now, especially if you’re a home buyer with big goals for the new financial year.
Having a solid grasp of your current finances can save your bacon down the road. Not just so you can submit your taxes at EOFY without a fuss, but also so you can plan appropriately for the new financial year. Now’s a great time to reach out to a mortgage broker, like us, to discuss your path toward buying your first home or potential investment property.
A mortgage broker will help you figure out how much you still need to save, and what liabilities you need to address before applying for a loan. Plus, we’ll help you determine what financial incentives you can take advantage of, so you can attack the new year with a single-minded purpose.
Did you know? First-home buyer schemes at the state and federal level are still waiting to be allocated for the new financial year. That means that the Australian public doesn’t yet know how many spots will be available in each program. A mortgage broker can keep you in the loop when the placements are announced, so you can get into the right one before they fill up.
The most important advice you need for EOFY
If there’s one piece of advice our clients are sick of hearing every EOFY, it’s to never leave everything to the last minute. We’ll say it time and time again, because it will always be true: preparation is key!
Here are some things you can start doing from now to get your sh*t together for 1 July:
- Review your financial goals & performance: Reviewing your current financial position, including your income, expenses and savings at EOFY is a no-brainer. This is your chance to confirm if your current mortgage terms, interest rates and repayment structure is working optimally for your goals. If they’re not, refinancing or restructuring your mortgage should be your priority in the new financial year.
- Evaluate your investment properties: Evaluating the performance of each of your investment properties is just as important. Take this moment to ensure that you have an up-to-date depreciation schedule as well.
- Reassess your super: Reassessing your super every year at EOFY is a good habit to get into to set yourself up for retirement. Take a look at your contributions and at the benefits of making extra repayments if it’s doable. If you think your super could be working harder, take this chance to shop around and find a new super fund that aligns with your goals.
- Gather your documentation: Organising your financial records from the past financial year, including your income statement, loan documents, investment details and more, can save you from hunting around for them at the last possible minute. Trust us, you don’t need that stress in your life.
What if you’re self-employed?
So you’re self-employed (go, you good thing!). That means you need to be extra on-top of your finances at EOFY. If you haven’t already, begin sorting your expenses, like your home, office, vehicle, equipment and other business-related costs.
You also need to review your cashflow forecast for next financial year and set aside funds to avoid paying a large lump-sum in your return. Don’t forget to review your insurance and management plans, and seek professional advice and support from a qualified accountant if you feel overwhelmed.
Debunking your EOFY misconceptions
There’s loads of BS to wade through at EOFY. Let’s break some of it down!
‘It’s too early to start planning’
In fact, quite the opposite is true. The earlier you start planning for EOFY, the less stressed you’ll be. We’ve said it before and we’ll say it again: preparation is absolutely, 100% key. If you can keep tax time in mind throughout the year and prep as you go then that’s even better.
‘Saving for a deposit is the only focus’
If you want to buy a home in the new financial year, saving for a deposit might seem like the only financial objective you need. But reality is not so cut-and-dry. By taking the time to step back and assess your finances, you get a better understanding of what you need to do to strengthen your financial position. Sure, that might be saving for a home deposit, but it might also be paying down your liabilities, restructuring your debts or reassessing your investments.
‘Credit scores don’t matter’
Do credit scores matter for your tax return? No. But will they impact how you achieve your goals in the new financial year? They certainly might! It’s very challenging to secure a home loan with a bad credit score. EOFY is a great time to take a look at your credit score and make a plan to improve it if necessary.
‘Financial advisors are unnecessary’
When we say ‘EOFY’, you probably think ‘accountant’. While tax accountants are invaluable at tax time (duh), a financial advisor can advise you on budgeting, savings and overall financial planning to help put your goals within reach.
Looking to make your home ownership goals a reality in the new financial year? Connected Finance is here to help you!
Appointments with us are free, so you don’t have anything to lose by booking a time to chat with our team and learn more about your home loan options.
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