Adulting Isn’t Just About Cutting Back on Takeout
The new year is approaching (can you believe it)?!? While most people focus on gym memberships and cutting carbs, savvy taxpayers know that January is the perfect time to whip their finances into shape, too. Sure, tax season may be a few months away, but why not start now and avoid the last-minute panic? Here are ten tax resolutions to kick off 2025 with a dose of financial fitness (and maybe even save a little extra cash).
Rewind, Reflect, and Regroup on Last Year’s Return
Before diving into this year’s tax jungle, take a look back at your 2023 tax return. Spot any missed deductions or places where you could have pocketed more savings? Think of this as a tax “post-game analysis”—learn from last season’s play to score higher this time around. Better still, consider ways in which you may be able to make strategically better use of your post-tax income to improve your long-term wealth.
Out with the Old, In with the Organised
Nothing says “fresh start” like clutter-free records. So, throw out that box of faded receipts from 2018 and start a system for 2024. Find a digital app, keep a dedicated tax folder, or just snap a pic of each receipt. Your future self (and your accountant) will thank you when tax time rolls around.
Lock In Some “Set-It-and-Forget-It” Super Contributions
Superannuation: it’s like the broccoli of financial planning. You know it’s good for you, but it’s easy to push aside for other present options. Start your year strong by automating your contributions early—then just sit back and let it grow while you focus on other immediate ongoing priorities.
Optimise Estate Planning and Trust Structures
As your wealth grows, estate planning becomes increasingly important. High-net-worth individuals should review trust structures, gifting strategies, and other tools to ensure tax-efficient wealth transfer. Regularly update wills, trusts, and beneficiaries to align with current laws and long-term financial goals.
Review Investments, Like a Boss
January is prime time to check that your investments are actually working for you. Are you getting the most tax benefits out of them? Are they growing and at what rate? Is this strong performance or ordinary performance (or bad performance)? Maybe it’s time to make a switch or just take a victory lap if they’re going strong. Either way, strategise now so you can enjoy the gains later. If you haven’t started to invest, perhaps it’s time to make a start.
Turn Your Giving Spirit into a Giving Strategy
Holiday giving doesn’t have to stop in December! Make regular contributions to your favourite causes and keep those receipts for tax time. You’ll not only support what matters to you but also benefit when it’s time to tally up deductions.
No More Guesswork on Quarterly Taxes
For freelancers, business owners, or anyone working for themselves, the quarterly tax payment can feel like that surprise bill you forgot about. So, plan ahead! Set up automated payments or put a reminder in your calendar—whatever helps you dodge a panic attack when tax bills fall due. Better still, speak to your accountant whether you’re paying the right amount as you go and if there is any possible basis of variation.
Get Your Health Insurance Covered for More Than Just Peace of Mind
Don’t wait for an emergency to check if you’re over- or under-covered. Revisiting your health insurance not only ensures you’re getting the right coverage but also lets you capitalise on any potential tax offsets. Why pay the government when you can put that money toward health insurance for you and/or your family? No brainer!
Hack Your Salary with Sacrifice
Salary sacrificing can sound complicated, but it’s really just the fancy term for keeping more of your pay in your hands. Consider adding super contributions or other tax-friendly perks to your pay. It’s like a hack to give yourself a raise, even if it doesn’t feel like one right away. Contact your employer to explore your options.
Be Friends with your Tax Advisor – AKA us (Early)
Sure, you could call your tax advisor in June, but why not kick off the year with a quick catch-up? They can help you structure your finances smartly now so you’re not pulling out your hair come tax time. Think of it as preventative financial care and from experience, it works wonders.
There you have it—ten resolutions that’ll set you up for a tax-friendly, stress-free year. Starting early with these simple steps doesn’t just mean a smoother tax season; it’s also a way to make sure you’re maximising your hard-earned money. So here’s to a financially fit calendar year ahead — may your deductions be plentiful, your receipts organised, and your tax advisor impressed.