Yep, it's that time of year again. Dust off that box of receipts, search your inbox for that donation you made to that fun run your friend did and then dump it all in an email / manilla folder to your accountant. With the End of Financial Year (EOFY) 2020 nearly here, it's time to ensure you're across all the ways to get "financially fit" and get yourself "tax sorted". Let's make sure you've maximised all the benefits available to you to prosper into the future.
Here's a quick summary of what we've covered in this "unofficial guide":
- Cracking EOFY vehicle deals
- Tax time - simple tips to maximise your return
- Travel plans cancelled? Think again!
- Unlock some great partner offers
- Access a range of other helpful financial info
Cracking EOFY vehicle deals
In the weeks leading up to June 30, car dealerships will be dropping their prices like a hot track on iTunes. They will be making deals with customers to ensure that they move all of their stock before their EOFY deadline. So be sure to make the most of the discounts that come with the EOFY, and remember to strap on your bargaining boots - there's always a deal ready to be made.
Take advantage of the EOFY sales and talk to our new car buying partners carconnect (a part of the Stratton Finance family). They'll do the haggling with dealerships for you, get you the best price on your car and then deliver it directly to your door. It's all done online and without needing to leave your couch!
Here's a selection of cracking EOFY vehicle deals we have access to (amongst many others!):
^ Whilst carconnect expects to be able to source these prices or better for our customers, actual prices will depend on use, payment option, location and availability.
^^ This weekly repayment estimate is provided by Stratton Finance Pty Ltd (Australian Credit Licence: 364340. ("Stratton"). Stratton is a finance broker. This repayment is calculated with an interest rate of 4.95% p.a. over a term of 60 months with a 0% residual / balloon payment. Other residual / balloon amounts are available. The vehicle price shown may not include other additional costs such as stamp duty, government fees and other charges payable in relation to the vehicle. In order to provide this estimate, Stratton are required to make several eligibility assumptions, including property ownership. To comply with regulations, consideration may be given for credit score and loan to value ratio (LVR), this estimate has been calculated with an LVR of >90%. This estimate is based on several assumptions outlined above and should be used for information purposes only and is not an offer of finance on particular terms. Credit fees, service fees and charges may apply. Credit to approved applicants only. A quote, details of all fees and charges may be obtained by contacting Stratton via strattonfinance.com.au or calling 1300 STRATTON (1300 787 288).
Tax time - simple tips to maximise your return*
Yes, it's time to gather those receipts and logbooks to get your taxes in order. Whether it's making the most of EOFY sales or finding out what can actually be claimed back, it pays to be prepared. Here are a few ways, as a car owner, that you can make the most of tax time this year.
Tip 1. Claim Car Expenses
For any motoring expense to be eligible to be claimed as a work expense, the vehicle must be used, at least partially, for business or work-related activity.
So how do you claim a deduction for the business use of your vehicle?
You have a choice of two different methods (as per ATO guidelines) to calculate and claim work-related car expenses.
Cents per kilometre method
Simply multiply the number of work-related kilometres you do per year, by an allowance of 68 cents per kilometre (up to a maximum distance of 5,000km).
Just use the formula kilometres/year x $0.68.
So, if you drive 3,000 km/year for work, you are eligible to claim back:
3,000 x $0.68 = $2,040!
Simply keep a detailed travel logbook of all your car use including car odometer readings, travel times, kilometres travelled and the reason for each journey (both business and non-business use) for a minimum continuous period of 12 weeks. From this logbook, you can calculate the average percentage your car is used for work purposes over the course of a year. From this percentage, you can then claim your total car expenses as a deduction to reduce your taxable income. Here's an example:
At the end of the income year, Tim's logbook shows he travelled a total of 11,000 kilometres, of which 6,600 were for business.
To work out the percentage the car was used for business purposes, Tim made the following calculation: 6,600/11,000 x 100 = 60%
Tim's total expenses, including depreciation, are $9,000 for the income year.
To work out how much he could claim, Tim completed the following calculation: $9,000 x 60% = $5,400
For easy car expense management relating to tax time, take a look at the ATO's app my Deductions.
Tip 2. Consider your work from home expenses
Many people have had to move to working from home in 2020, and as a result, the way they previously claimed various expenses such as a home office, internet usage etc will have changed. Be sure to talk to your accountant to maximise your return on this front.
*Remember to consult the ATO's guidelines and your accountant to ensure your tax activities suit your specific situation and asset usage guidelines.
Travel plans cancelled? Think again!
The past couple of months have certainly made us realise what is important; and as we start to see lockdown measures relax, it's time to think about adventuring out in Australia. So what a better time to make a new car, caravan or boat purchase than the end of the financial year. Remember that we can help you ensure you get a great finance deal on any leisure asset.
For many of us, our previous holiday plans have been cancelled or postponed, but now is the time for a bit of dreaming, planning and thinking about the Outback break you might take. Despite the fact that international travel will be off the table for the foreseeable future, we're blessed to live in an amazing country with many places we can go for a weekend or for a few weeks. It looks like the perfect time to become a tourist in our own country and visit the places we've always wanted to go.
If you're after some inspiration on the best places to visit around Australia, check out articles these below:
- Unmissable scenic drives in Victoria
- Should you buy a new or used caravan
- The best scenic drives around Sydney
- The best caravan spots in Australia
- The best scenic drives around Melbourne
"Gonna travel, gonna travel wild and free, I'm gonna pack my bags beacuse this great big [Australia!] is calling me." E.P.
Unlock some great partner offers
Access a range of other helpful financial info
We regularly publish a wide a range of financial information in our newsroom. Here's a hand-picked selection of articles you might find interesting:
- Keeping good money habits post-pandemic
- Support and assistance during COVID-19
- 5 financial tips everyone should know for 2020
We're here to help, anytime
So there it is, the "unofficial guide" to EOFY 2020. Make the most of the EOFY vehicle sales, buy a new leisure asset to get outdoors or just get a great deal on your finance by calling us now on 1300 787 288 or get a 30-second online quote.
But remember you have to be quick, June 30 will be here before you know it!