New Financial Year Resolution
Written by Anna Colley & Dylan Sinclair
As the calendar turns and the Australian financial year resets on July 1, it's the perfect time for individuals and businesses alike to reflect on their financial habits and set new goals. The new financial year offers an opportunity to reassess, reorganise, and rejuvenate our financial strategies to ensure a prosperous year ahead. Here are some resolutions that can help prepare you to navigate the Australian financial landscape more effectively.
For Individuals
Review Your Budget
Action: Analyse your previous year's spending and identify areas for improvement.
Benefit: Better control over your finances and increased savings.
Maximise Superannuation Contributions
Action: Consider increasing your voluntary superannuation contributions.
Benefit: Potential tax benefits and a more secure retirement.
Tax Planning
Action: Start keeping detailed records of your income and deductions. Use tools like the myTax system, or PayCalculator to help predict your income and expenses over the next financial year.
Benefit: Minimised tax liabilities and maximised returns.
Emergency Fund
Action: Establish or build upon an emergency fund.
Benefit: Financial security in the face of unexpected expenses.
Invest Smartly
Action: Diversify your investments and seek advice from a financial advisor – Contact our Financial Advice team here.
Benefit: Improved financial growth and reduced risk.
For Businesses
Cash Flow Management
Action: Regularly monitor and forecast your cash flow.
Benefit: Avoid cash shortages and ensure smooth operations.
Tax Obligations
Action: Keep up to date with tax changes and ensure timely BAS and PAYG submissions. If you are unsure about how to manage this, contact our Accounting team here.
Benefit: Avoid penalties and benefit from potential tax deductions.
Employee Superannuation
Action: Ensure all superannuation contributions are up to date and compliant.
Benefit: Compliance with regulations and improved employee satisfaction.
Financial Reporting
Action: Conduct a thorough review of financial statements from the previous year.
Benefit: Better insight into financial health and improved decision-making.
Technology Investments
Action: Invest in accounting software and other technological tools to streamline operations. Read our article here on using Xero’s software and its benefits.
Benefit: Increased efficiency and accuracy in financial management.
For Investors
Portfolio Review
o Action: Assess the performance of your investments and adjust your portfolio as needed – Contact our Financial Advice team here for professional tips and advice on your investments.
Benefit: Optimised returns and alignment with financial goals.
Tax Efficiency
Action: Make use of franking credits and other tax-effective strategies.
Benefit: Reduced tax burden and enhanced investment returns.
Stay Informed
Action: Keep abreast of market trends and economic forecasts.
Benefit: Informed decision-making and timely adjustments to investment strategies.
General Tips
Seek Professional Advice: Engage with our team of expert Financial Advisers and Accountants to gain expert insight and advice.
Stay Compliant: Ensure all financial activities are compliant with the Australian Taxation Office (ATO) regulations.
Set Clear Goals: Define clear financial goals for the year and create a plan to achieve them.
By adopting these resolutions, you can start the new financial year on a strong footing, ensuring better financial health and success. Whether you’re an individual looking to save more or a business aiming for growth, these strategies can help you make the most of the opportunities the new financial year presents. Contact our team at Salt Financial Group to receive professional advice that will help you to achieve these goals.