When the clock struck midnight and you entered 2015, you probably had a long list of resolutions that you were ready to kick off in the New Year, e.g save big bucks, ditch that vice and give back. But if you are like many of us and the months have slipped by without any of those goals being met, we propose the mid year mark is the perfect time to revive those resolutions for the EOFY.
Here our top tips for a prosperous end to the Year of the Sheep:
1. Switch home loans
Have you been thinking about refinancing from your current mortgage provider since the beginning of the year but just never got around to it? Well, with the official cash rate slashed to a record low 2% at the May RBA board meeting you might be happy you waited.
Our number crunching shows that by refinancing a $400,000 mortgage from the average variable rate home loan that is currently 4.70% to our Mystery Bank deal of 3.99%, you would save an incredible $47,952 in interest over 25 years.
2. Get tax ready
With just over a week until 30 June, thinking about the tax deductions you can make should be high on your priority list. You might be surprised to find the large number of things you can claim like clothing and laundry expenses, home office expenses and property maintenance if you own an investment property. The Australian Government says as a rule of thumb, if you need to spend money to earn income you can usually claim it.
So take the time to get those receipts organised, or have a look through your credit card or bank statements, to ensure you have records of anything you decide to claim. If you’re unsure if an item is tax deductible speak to your accountant or see the full list of deductions you can claim here.
3. Take advantage of the EOFY sales
Whether it’s that new Plasma TV you’ve been eyeing for sometime or simply a chance to stock up on all those household essentials (e.g microwave, refrigerator or vacuum cleaner), with great discounts on offer the end of financial year sales is the ultimate time to whip out your credit card.
It’s also your chance to make some last minute purchases that will bring down your taxable income. So if you need some new gadgets, tools or equipment for work take advantage of the countless discounts on offer.
Are you a small business owner? Then you will be pleased to hear the recent Budget announcement means you can now claim up to $20,000 per tax deductible item, compared to the previous limit of just $1,000.
4. Give back
Speaking of your tax return, did you know you can do good whilst reducing your taxable income? That’s right, in Australia donations of $2 or more are 100% tax deductible.
Just keep in mind the charity must be listed as a deductible gift recipient, which includes organisations like the Salvation Army, the Leukaemia Foundation of Australia and the Royal Children’s Hospital Foundation (to name a few).
5. Say goodriddence to your vice
We’ve all heard the saying New Year, New You. By ditching your vice, whether it be smoking or eating junk food, you can not only improve your health but save big bucks in the New Financial Year.
Say you eat $200 worth of takeaway a week, by dropping this vice over 6 months you will save a mega $4,800. That’s more than enough for your Christmas presents and a relaxing 2016 summer holiday!
If you want to quit your vice with the support of others, get on board with one of the many upcoming charity events like Dry July.
What New Year’s resolutions will you revisit this EOFY?