Tax time is a good time for a financial health check

Tax time is a good time for a financial health check

The thought of completing a tax return does not excite many of us. However, all the work to compile income, expenses, savings and debt receipts for the tax office can also provide a great opportunity to kick start a financial health check you. Having this holistic view will help you feel more confident making effective decisions and establishing good financial habits. It’s also a great time to review and reset your financial goals.

By looking at tax time as an annual review of your financial wellbeing, it will soon become an important part of your yearly calendar.

To help you get started, we’ve put together a quick financial health checklist for you.

Before you start

✅ Link your ATO portal to your MyGov account, and check that your personal details are accurate

✅ Check your TFN (Tax File Number)

✅ Decide: Self-lodging or using a registered tax agent/accountant?

✅ Are the bank account details for your tax refund correct?

✅ Know your lodgement deadline:

31 October if self-lodging

Later if using a tax agent

 

Income to declare

Much – or all – of your income details already exist within the ATO portal of your MyGov account, but it’s important to double check. Your income should include:

✅ PAYG summaries from employers

✅ Centrelink payments (JobSeeker, Family Tax Benefit, etc.)

✅ Interest earned on bank accounts

✅ Dividends or income from shares

✅ Rental property income (if applicable)

 

Deductions to prepare

Many deductions require receipts, logbooks, bank and rental property statements, to prove when the expenditure was incurred by you. Common deductions can include:

✅ Work-related expenses (tools, uniforms, travel, etc.)

✅ Home office expenses (computer, stationery etc.)

✅ Education and professional development

✅ Union fees or professional memberships

✅ Donations to registered charities

✅ Personal super contributions

✅ Income protection insurance

 

Other information required

The information below may be relevant to you based on your personal circumstances:

✅ Private health insurance policy details

✅ Spouse or dependent income (for certain offsets/rebates)

✅ Details of HELP/HECS debt

 

After lodging

After you have lodged your tax return, it’s prudent to do the following:

✅ Keep a copy of your lodged return (download from myGov)

✅ Save your receipts and records for 5 years

✅ Plan how to use your refund (e.g., savings, super, debt)

✅ Set yourself up for the year ahead by keeping better records and track deductions through the year.

Whether you receive a refund or not, it is also useful during this time to review your banking products and consider:

✅ Paying off high-interest debt

✅ Are you making your money work for you:

1. Could you be getting better rates on your savings, loans, fees, or rewards?
2. Do your accounts, insurances, and credit products still meet your goals?
3. Could consolidating accounts, refinancing, or adjusting automatic payments improve your cash flow?

 

We’re here to help 

If you have any questions about your banking options, call us on 13 63 73.

This information is general only, does not consider your personal circumstances and you should consider its appropriateness & refer to the T&C’s or PDS before acquiring the product. These documents are available on request. Fees & charges may apply & interest rates are subject to change. The Tax information is general in nature, does not constitute advice and you should seek independent tax or financial advice where appropriate. Police Financial Services Limited ABN 33 087 651 661 - trading as BankVic | AFSL and Australian Credit License 240293.