The end of the financial year is fast approaching and with it comes a hard deadline for important life admin .
Here’s a list of 7 things you need to do before June 30 according to the team at Finder.com.au.
1. Check your life insurance cover within your super
Many Aussies opt in for life insurance through their super fund.
If you have any life insurance cover in an inactive super account – that is, one you haven’t contributed in 16 months – you risk having this cover removed unless you actively opt in to retain it by informing your super fund.
You have until June 30 to contact your fund, reactivate your account and to stop your life insurance from being automatically cancelled on July 1.
2. Take out health insurance to avoid the Medicare Levy Surcharge
Finder research shows 39% of Aussies don’t understand the Medicare Levy Surcharge (MLS).
The MLS is an additional tax between 1% and 1.5% of your income and kicks in once you’re earning more than $90,000 a year for a single and $180,000 for a family.
The initiative is designed to encourage Australians to take out private health insurance to alleviate pressure on the public health care system.
You can avoid paying the MLS if you earn over $90,000 by taking out health insurance.
Tasmanians are the most likely to know about what the levy involves (73%), while only 51% of South Australians say they understand it.
3. Register to MyGov to you get your income summary for tax
The ATO has introduced a new way of receiving your annual payment summary.
You need to ensure you’ve set up a myGov account to receive your income summary for the last year.
Your end-of-year payment summary information, now called an ‘income statement’, will be made available through the myGov portal.
You will no longer be issued with the PDF style payment summaries.This change has occurred because employers are now required to report pay and super information directly to the ATO.
4. How to avoid Lifetime Health Cover Loading
If you’ve turned 31 and don’t have health insurance, you should consider taking out at least basic hospital cover before July 1 to avoid paying the Lifetime Health Cover Loading.
The loading is paid on top of your private hospital policy price if you take out health insurance later in life, and it’s at an additional 2% for every year you don’t have it.
For example, if you take out health insurance for the first time at 40, you’ll pay an extra 20%.
Finder research reveals that over half (61%) of Gen Y (aged 25 – 39) say they don’t understand the loading or what it means for them.
Approximately 38% of Gen Y – equivalent to 1.4 million people – are without private health insurance, leaving themselves open to paying more than they need to.
Over half (59%) of the population in general is clueless about Lifetime Health Cover Loading.
5. Instant asset write off
For small to medium businesses, the asset write off has been increased from $25,000 to $30,000.
If businesses want to claim something this financial year, they’ll need to purchase it before June 30.
Assets can include technology, machinery, office equipment, and anything that’s deemed essential for the business.
The scheme has been expanded to include businesses that earn an annual revenue of up to $50 million, meaning more tax relief for more business owners.
6. Review and update your income estimate in MyGov
For any rebates based on your income – such as family tax benefits – make sure you review and update your income estimate in MyGov so it’s as accurate as possible.
If you don’t do this by July 1, you risk owing the government money.
7. Check your Frequent Flyer balance so points don’t expire
Frequent flyer points expire if there’s no activity in your account, so it makes sense at the end of the financial year to check when your most recent activity was to make sure you don’t lose those points.
You can keep your points balance current just by earning supermarket rewards points or using a rewards credit card.
Make sure you’ve earned points in the last 18 to 24 months, otherwise your points will expire.
They don’t expire on June 30, but it’s a good time to check it out and so you can either use your points, or make sure your account remains active.