End of June need not be taxing
WITH the end of the financial year just days away, it is a time when we are forced to seriously consider our finances. A 2014 White Paper released by Advocate Private Wealth showed 71 per cent of people spent less than one hour each week on personal finances. Of the 137 people surveyed, close to half wanted to dedicate more time to their financial affairs. But tax time does not have to be a stressful, confusing and time-consuming chore. COCKBURN finance guru Kelly Pillay said taking time during the year to get paperwork in order could take the stress out of tax time.
Ms Pillay is an accountant, financial planner and director of KLI Group in Cockburn Central.
She said most of the confusion came from a lack of understanding about how tax worked, what expenses could be claimed and bad record keeping. “Keep all your receipts and if you think it may be claimable, put it aside,” she said.
“People often think they need complex programs, but I have one client who just keeps a shoe box in her room and she puts everything in and collates it once a year.”
Ms Pillay said people should meet with their accountant before the end of June.
“So many individuals only come and see their accountant after the financial year is finished and they’ve got their return to be lodged,” she said.
“Unfortunately by that stage most of the assistance and tax planning work can’t be done.
“You should look at your accountant as part of your financial team.
“Seeing them before the year is finished allows them to review your personal circumstances and assist you with planning to maximise your situation.”
Ms Pillay said tax time should not be a stressful period.
“I see it as an opportunity for people to sit down and talk about their personal lifestyle goals and how money fits in with that,” she said.
“It’s a great chance to reflect and create plans for the new year to improve.”