End of Financial Year Tips for Borrowers

Written By Peter Jefferson

The year is flying by and tax time is already upon us.  To help you get organised, we’ve noted some important dates and key information to have ready.

Important Dates

  • June 30: This is when the financial year ends. Your Tax return is calculated for a financial year, in Australia, that is July 1 to June 30.

  • July 1: This is when you can start lodging your tax return if you have all of the relevant information ready.

  • July 14: The date when most salaried individuals receive PAYG (Summary of tax payments) from their employers. 

  • Oct 31: Deadline to file your taxes.

Key Documents & Information to Have Ready

  • TFN: Your Tax File Number

  •  Bank Account Details: Your Bank Name, Account Number and BSB in case the ATO needs to process a refund

  •  Medicare Card: Card number and its expiry date.

  •  PAYG: Payment summary provided by your employer

Other Income:

Gather information regarding income from other sources such as:

  • Rent

  • Interest earned

  • Stock dividends

  • Royalties

  • Foreign income

  • Capital gains

  • Cryptocurrency gains etc.

Deductions:

Deductions can be tricky to navigate and usually include work-related expenses that have been incurred and not reimbursed which may impact your tax burden such as:

  • Work-related deductions

  • Home office expenses

  • Self-education and professional development

  • Professional registrations, subscriptions, memberships

  • Vehicle and travel expenses

  • Protective clothing, laundry and dry-cleaning expenses

  • Tools and equipment, including depreciable assets (such as laptops)

  • Accountant or tax agent fees

  • Personal super contributions

  • Investment income expenses, such as margin loans and financial adviser fees

  • Income protection insurance premiums

Private Health Insurance Rebate

If you have private health insurance, you are likely to be eligible for the private health insurance rebate which the government contributes towards the cost of your premium. Ensure you have the required statement through from your insurer.

Home Office Expenses

If you have been working remotely, the ATO has introduced a flat rate claim of 80c per hour for all expenses. Those which may be considered include:

  • Phone and internet

  • Heating, cooling and lighting the workspace.

  • Printing and stationery

  • Equipment including furniture, computers and printers.

As with most deductions, it’s important to note that:

  • You must have spent the money

  • The expense must be directly related to earning an income

  • You must have recorded proof

Investment Property Expenses

Your property manager will provide and annual tax statement and ensure you also have information regarding any expenses you have personally paid including strata fees, land tax insurance or mortgage interest.

If you have bought or sold properties ensure you have copies of the sales contract, settlement statements and related purchase or sale costs.

A depreciation schedule, which shows the depreciation of the building and items within, may also be useful in delivering savings.

For your investment properties make sure you have considered the following:

  • Council and Water Rates

  • Strata Levies

  • Insurances

  • Agent statements

  • Bank fees

  • Borrowing costs (e.g. Mortgage insurance, application fees etc)*

  • Repairs and Maintenance

  • Interest on loans

  • Depreciation and Special building write off*

  • Travel expenses

  • Renovations or improvements you have made to the property*

  • Land Tax

Of course, there is no substitute for expert advice, so speak to your accountant or financial planner to find out how best to maximise your return at tax time.

Review Your Investment Strategy

Despite being one of the busiest times of the year, the end of the financial year also offers a great opportunity to review how your investment property has performed throughout the year with a property manager, if you have one.

It is also a good time to check in with your mortgage broker to ensure your existing loan is still servicing your needs and discuss any future plans to expand your investment portfolio.

To help you set a great foundation for the next financial year, I am offering homeowners and investors a FREE PropTrack Property Report. This is a comprehensive market and property report so that you understand the true value of your property in the current property climate and will help with your future financial planning. Click here to get your report. 

If you’d like a home loan strategy session to determine if your mortgage could be working harder for you, book one today.

Note: The information provided in this article is for general education purposes only and is not intended to constitute specialist or personal advice. The information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement with regard to your personal circumstances, before making any decision about whether to acquire the product.

Peter Jefferson
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