If you finished the 2024-25 financial year feeling like you could've done more with your money, you're not alone.
Between cost-of-living pressures, interest rate anxiety and the juggle of everyday life, many people didn't quite hit their financial stride. Life is a lot right now.
But here's the good news: A new financial year means a fresh start.
Whether your goals are buying property, building your savings, or paying less tax, now is the time to set yourself up with intention.
Here are five smart ways to be strategic with your money this financial year.
1. Do a money audit
This doesn't need to be war and peace. You can literally do it on the back of an envelope if you want. We want to look at four main categories - assets, liabilities, income & expenses.
What is your current overall financial picture? How much has that changed over the last 12 months? Are you happy with what the numbers reveal and if not, why? What is the most important area to focus on in the FY ahead?
I like to do this at least once or twice a year, to look for insights and see if I am on track - or if I've drifted off course.
Pro Tip: Set one financial goal for the new FY that is easy to achieve. We often make our goals so lofty and hard - we give up before we've even started. Once you've achieved that one it will be easier to set the next (slightly harder) one.
Maybe it's that you stop buying lunch for a week and bring in leftovers, buy no new clothes this month, promise yourself you will not go into Bunnings and come out with 14 new house plants you didn't need. Find an easy money win you can set and achieve in the next four weeks, it will give you money momentum early in the new FY.
2. Optimise your offset account (or finally open one)
If you have a mortgage, your offset account is one of the most powerful tools in your financial toolkit. By parking your salary, savings or even rent received into your offset account, you reduce the balance your interest is calculated on- without locking your money away.
Many lenders now also offer loans with a multiple-offset functionality - which I personally love! You can have specific accounts for different purposes and goals (which give you clarity, oversight and motivation), without giving up flexibility or the reduction to your interest on your debt.
Pro Tips:
If you haven't reviewed your mortgage recently, it's worth while doing so - the loyalty tax is real my friends!
Even a 0.5 percent reduction on a $600,000 loan could save you thousands per year. That's more money to use to get ahead financially.
If you're planning to buy in the next 12-24 months, ask your Mortgage Broker about offsets and how they may work for you. Some lenders will only let you have them against a variable loan, others may not allow you to have more than one - so worth getting an expert to find you the best option.
View Tool: Find out how much you can borrow.
3. Maximise your Super (without the last-minute rush)
This is a win/win strategy for most people. Boost your retirement savings and save tax. Even if you don't have a huge amount to spare, it may be worth considering what amount you could start to additionally contribute, then increase that over time as your budget allows. The more you add when you're young, the more time it has to compound and grow... And you're never going to be younger than you are right now. Just saying.
If you make extra contributions and have never purchased property before, it is important to note that the First Home Super Saver Scheme allows you to take out additional contributions to Super to buy your first home. Go and check the fine print as there are caps and conditions to be across.
Pro Tip: This FY employers will now be required to put 12% into your Super (with a concessional contribution cap of $30k). If you are adding additional money into Super, make sure you are sticking within the total caps.
If your balance is under $500k and you have unused cap amounts from the last five financial years (remembering the annual caps have changed due to indexation over that time), you may be able to top up those financial years.
If you're making extra contributions as a salary-sacrifice (pre-tax money) you won't need to complete any paperwork at EOFY.
However, if you are putting money from your bank account (that's been taxed), you will need to complete a Notice Of Intent To Claim Form - so that you can get the tax deduction (no one likes missing an eligible tax deduction!).
4. Get serious about tax planning - not just at tax time
A common mistake is waiting until tax time to start thinking about deductions. It's the equivalent of the Christmas Eve mad panic - stressful and unnecessary.
Keep a digital folder or app to track work-related expenses, charitable donations, and even investment property costs. If you're working from home or running a side hustle, these deductions can add up fast.
This year, think beyond the obvious. Property investors can claim deductions for a bunch of costs like property management fees, maintenance expenses, loan interest and a bunch more. But if you're planning on doing works to your rental property, chat to your Accountant to make sure you're sticking within the guidelines (the ATO has clear rules about what are repairs vs capital expenses).
View property tip: If you're eyeing an investment property, understanding the overall strategy and subsequent tax advantages (like negative gearing or depreciation) could shape what type of property you buy.
5. Just start
I know, you know this - but it's worth reminding you that waiting is costing you. There is never the 'perfect time'. Life is messy, complex and there is always laundry to do. You're probably not going to jump out of bed tomorrow morning brimming with excitement to get cracking. You're probably going to be tired and in need of caffeine - that's ok. Do it tired. Do it when you can't be bothered. Do it anyway.
Waiting is the most common yet corrosive factor when it comes to achieving your goals. Stop telling yourself you'll wait till you get a promotion, your tax return, have the time, energy or inclination. Start now, exactly as you are and take one bite at a time.
If you feel like the last 12 months didn't exactly go as planned, don't beat yourself up. Learn from it. Use this new financial year as a clean slate. A fresh start. Dust yourself off. Pick yourself up and take action.
By this time next year, you could be in a very different financial position.
READ MORE: Finance tips, tricks and insights
Jessica Brady is a qualified Financial Adviser and leading money expert. She is on a mission to educate and empower everyday Australians to be better with money through her online money programs and via the Financially Fierce Podcast . You can learn more at jessicabrady.com.au
This article is general advice only, all of the comments above do not take into account your objectives, financial situation or needs.
Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. Jessica is licenced through Paragem Pty Ltd - AFSL 297276. ABN 16 108 571 875, Authorised Representative Number 001259972.
