Financial experts have revealed five things Australians should check before June 30 to keep their household budgets healthy amidst the effects of COVID-19 lockdowns.
Many businesses have been hit hard by restrictions, with thousands of Australians being stood down or taking temporary pay reductions, and the wider economic effects are still uncertain.
However, with the financial year drawing to a close there are some simple steps you can take to maximise your income in the next 12 months.
Financial strategist Theo Marinis said organising things such as superannuation contributions and pre-pay expenses before the end of the month was key to putting yourself in the best financial position for next year.
Financial experts have revealed five things Australians should check before June 30 to keep their household budgets healthy amidst the effects of COVID-19 lockdowns
'We're human beings and we always kick the can down the road. The lesson of COVID-19 is take control of things beforehand, even though it's our nature to wait,' Mr Marinis told The Daily Telegraph.
Mr Marinis said checking insurance policies and whether they need to be increased or decreased could providing a saving.
Pre-paying income protection insurance is tax deductable - as is pre-paying investment loan interest.
Tax partner from HLB Mann Judd, Peter Bembrick, said another potential tax windfall is claiming working from home expenses during coronavirus restrictions.
If you bought any items such as stationary or furniture to setup a home office these can be claimed - and more expensive items such as laptops can be partially claimed for the amount you used them for work.
Your household bills such as air-conditioning, electricity, phone and internet can also be partially claimed for the amount you used them during work hours.
The Australian Taxation Office has introduced a shortcut method where you can claim an 80c deduction for every hour you worked from home, however, calculating individual expenses may give you a greater saving.
Rex Whitford, from Wealth for Life Financial Planning, said making additional contributions to your superannuation account was also tax deductible.
There is usually a cap of $25,000 on voluntary super contributions that is tax exempt, however, this year the amount has been raised.
'This is the first year where they can use the previous year's unused concessional cap, as long as their superannuation was under $500,000 on 1 July 2019,' Mr Whitford said.
Your household bills such as air-conditioning, electricity, phone and internet can also be partially claimed for the amount you used them during work hours
FIVE THINGS TO CHECK BEFORE JUNE 30
1. Can you claim working from home expenses in your tax return this financial year?
2. Will making superannuation contributions deliver you tax benefits?
3. Can you access pensions or government benefits as falling asset values, such as lower house prices, improve eligibility?
4. What would be your capital gains or losses from selling investments and should you sell before June 30?
5. Should you change your investments in terms of the effects of COVID-19 lockdowns?