Make the End Of The Financial Year (or EOFY) pay off for you
With less than a week to go, chances are you’re being besieged in shopping centres and online by so-called End Of Financial Year sales.
The deadline of midnight June 30 is powerful enough to push many purchasers to grab a good price or make the most of tax breaks, but how do you know what’s really worthwhile?
Read on to find out more about the opportunities and false hopes of EOFY sales and offers and share some of your own best bargains below.
EOFY GUIDE
It should really be called the end of the fiscal year because its whole reason for existence is to bookend a period of 12 months for taxation purposes.
If you have a business, are an ordinary taxpayer with work expenses, or can make extra contributions to your superannuation, the date is significant.
If you are not on top of your obligations, especially as concerns super, get going now and seek the appropriate advice. Missing the deadline can be costly in lost tax breaks.
But apart from tax the EOFY presents some great opportunities for everything from power to clothing and even health insurance.
The Australian Retailers Association says the sales are designed to clear last season’s winter stock from the floor to make way for the spring collections. They also liberate the funds needed to buy them.
Power tools, TVs and other electrical goods might not have too much of a seasonal swing but there can be some real discounts available.
The budget’s new tax breaks for small business and even unincorporated sole traders has created a run on items such as computers which can be depreciated.
Any items under $20,000 are included in the instant asset write off but you need an ABN, Australian Business Number, and an active enterprise.
Small cars are popular buys under this scheme and many car yards have their own EOFY sales.
But again check the eligibility rules to ensure you’re covered.
Most of all avoid any unneeded buys, be they bargains or not, if they are not going to be used or are out of your budget they are hardly a wise purchase.
Many power companies also have offers in the market now, such as one month’s free electricity or a $100 rebate. They are keen to grow their customer base but ensure it’s not at your cost.
Most of these offers are for 12 months only, which may or may not suit you, and most reserve the right to increase the tariffs from July 1!
The discount might remain in place but it will be off a higher base. Consumer attempts to insist prices are fixed for the duration of the contract have so far proved unsuccessful.
Finally there’s health insurance, now in its busiest time in the year for new customers.
Those who’ve turned 31 have to insure themselves by July 1 or under the ‘stick’ of the Lifetime Health Cover provisions pay 2% extra on any premium for every year they weren’t covered. But anyone can make the most of the various discounts and offers from health insurers, including the FiftyUp Club’s special offer with HCF.
However, make sure the switch is good for you by checking up on both the policy and provider. The government website www.privatehealth.gov.au is a good place to compare covers.
Finally beware of scams as criminals too take advantage of all the financial hullabaloo to submit false invoices, steal identities and generally defraud others. Maybe they have to file tax returns too.
SHARE YOUR EOFY EXPERIENCES
It might have been a car deal snapped up hours before the taxman shut down his all-powerful calendar.
It could have been a utility contract like electricity or even health insurance with an offer too good to miss.
Or maybe it was a dud pushed onto the unwary consumer amidst all the take-it-or-lose-it chaos of June 30.
Whatever your experience of an End of Financial Year buy, let us know about it below. Your tip might help others score a great deal or avoid getting burned.
