As the end of the financial year approaches, it's essential to start preparing to ensure a smooth transition into the new fiscal period. Wherever you are on your financial journey, taking proactive steps can help you effectively manage your finances and maximise your opportunities.

To help you get started, here are five valuable tips to consider when preparing for the end of the financial year. From organising your financial records to considering alternative superannuation strategies, these tips will help you navigate with confidence.

1. Start preparing tax returns

Our expectation is that this financial year, every Australian taxpayer will eagerly look forward to completing their tax return and if applicable, welcoming their refund.

If you are in that category, why not be proactive and start to prepare the items for your return now?

Do some research on what is tax deductible, organise what you need to itemise and categorise, have a quick call with your tax adviser to see what other guidance you need, check what you prepared last year and be ready to act.

There might be a rush to get tax returns done in July so the more prepared you are, the better. Getting things in order when the end of financial year (EOFY) is fast approaching could benefit you early in the new financial year.

2. Maximise or bring forward deductions

With only a few weeks left until 30 June, look at deductions you might be able to bring forward and pay this side of 30 June to maximise your tax deductible expenses.

This might include things like:

  • Insurance — Income protection premiums are tax deductible.
  • Deductible interest payments on investment loans for income generating assets like shares, managed funds and property.
  • Work-related expenses that are applicable for tax deductibility. For example, business use for cars and home offices, uniforms and clothing expenses, university and other self-education expenses
  • Personal deductible superannuation contributions — You may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income.

3. Consider other superannuation strategies

For many people with a partner, some of the following strategies are worth considering:

  • Government co-contribution— You may be eligible for a co-contribution of up to $500 from the Government if you make non-concessional contributions to your superannuation.
  • Spouse contribution — You may be able to claim a tax offset of up to $540 if you make non-concessional contributions to your spouse's superannuation.
  • Contribution splitting — You may be able to arrange to transfer an amount of your concessional contributions from the previous financial year to your spouse's superannuation.

If eligible, consider non-concessional contribution cap strategies. The non-concessional contributions cap generally includes personal contributions not claimed as a tax deduction and spouse contributions, but excludes, for example, Government co-contributions, downsizer contributions and eligible small business sale proceeds up to capital gains tax (CGT) cap. The non-concessional contributions cap is $110,000 per annum.

If you are under age 75 in a financial year, you may be able to use the '3-year bring forward rule' to bring forward your next 2 years of non-concessional caps and make up to $330,000 of non-concessional contributions. If your total super balance is between $1.48 million and $1.7 million the amount you can bring forward will be different. Making this category of contributions to your superannuation will not reduce your personal income tax, but could help build wealth for retirement within a tax-effective environment.

4. Budgeting habits

With so much financial uncertainty caused by the current inflation and interest rate cycle, a household budget in 2023 is a necessity.

Look back

30 June is a great time to corral bank and credit card statements and do a review of your personal 'profit and loss statement'. Most banks allow an online export into a CSV file making it easy to see and categorise where our household income has been allocated.

Look forward

Taking the learnings from the 'look back' exercise, what will you change? The biggest categories of expenditure like travel, fuel, food and utilities will need a close review. Get into the habit of 'shopping around' for better deals. Everyone is struggling with the cost of living including businesses so competition is your friend. Take advantage of it where you can.

5. Set yourself a savings or investment goal

Using the learnings from your budget planning and 'look back' should provide you with the confidence to set a future savings or investment goal. Clarity on money allows choices so perhaps it is one of two things:

  1. The most wonderful (but expensive) time of the year is Christmas including summer holidays with the family, buying gifts and entertaining. Look at the cost of this period last year and set an amount aside regularly to fund this year.
  2. Longer term goals are an exciting thing to think about. When we book travel, we look forward to that trip until it happens. What about investing for a significant future goal? Whether it is saving for a home or investment property deposit, children's education, renovations, or just building wealth to generate complementary passive income, the best time to start is now. You have identified savings, now use them.

How Gallagher can help

Wherever you are on your financial journey, from early career to retirement, we can help you plan for the future and adjust to changes when 'life' happens.

From busy individuals to those with complex business or personal situations, our advisers can help you achieve your financial goals by bridging the gap of where you are today and where you want to be tomorrow.



The information and any advice in this article does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. When considering whether to acquire a financial product, before making any decision, you should obtain the relevant product disclosure statement.

This article may contain material provided by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. To the maximum extent permitted by law: no guarantee, representation or warranty is given that the information or advice in this newsletter is complete, accurate, up-to-date or fit for any purpose.