As busy parents, our lives usually revolve around some sort of checklist.
Grocery checklist, bedtime routine checklist, school stationary checklist.
So, we hear you when you say you’re over the checklists. But what if a checklist could save you money?
To help ease some of the end of financial year admin, we’ve put together the ultimate EOFY checklist which might help you pocket some extra cash that could be hidden in your household bills.
EOFY checklist for parents
Review your health policy: If you’re a private health insurance member and haven’t reviewed your policy in a while, you could be paying for things you no longer need. For example, if you’ve finished having babies, you might still be paying for pregnancy.
Have a think about how your life circumstances have changed and whether a review of your cover is appropriate. You could simply just be paying for Extras you no longer use! It doesn’t hurt to do a quick health check on your health insurance.
Watch out for Medicare Levy Surcharge (MLS): If however, you don’t have private hospital cover, do keep in mind that you could be slugged with a minimum of $900 a year in extra tax thanks to the MLS if your taxable income is more than $90,000 per year as a single or $180,000 for families.
If you’re earning above the MLS income threshold and don’t have private hospital cover, you won’t be able to avoid the tax this financial year.
However, this June could be a great time to consider taking out cover to help reduce the risk of being slugged with extra tax next financial year.
If you’re turning 31, consider health cover: If you don’t have hospital cover by 1st July following your 31st birthday, you’ll pay more for your hospital premiums if you do decide to take it out down the track due to Lifetime Health Cover (LHC) loading . The longer you wait to take out cover, the more expensive it can become.
So, if you turned 31 during the past year (or are about to) and don’t have private health insurance, now could be the time to think about taking out hospital cover to avoid paying higher premiums later in life.
Don’t forget to claim on your income protection insurance premiums: One of the first things I did after having my firstborn was take out income protection insurance for myself and my husband. The hated the thought of not being able to make ends meet for my family if we were to become sick or injured and couldn’t work.
So, what does this have to do with tax time though? If you have income protection insurance, you may be surprised to know that you could be eligible to claim on your premiums at tax time.
The ATO states that the amount of tax deduction you can claim may depend upon, your taxable income, your tax rate, your premium price . Note, your income protection must be separate from your superannuation to make a claim.
Review your utilities: Sitting down and reviewing your utility bills against other offers in the market may sound like an absolute chore, which is where a comparison service like iSelect can help you. iSelect can review your policy or product, compare it against other offers from their range and find you a more suitable offer* – they even complete the switch for you!
So, now that you’re running out of excuses to review your utilities, here a few bills lying around the house that you can consider starting with:
- Energy bills: As we crank up our heaters and have longer showers this winter, it might be a good idea to check you’re still paying a good price for your energy deal. If you’ve been working from home, remember you may be also entitled to claim on your energy bills.
- Broadband: A lot of us are likely to be spending more time at home in the colder months streaming movies and shows or playing games online which can come at an expense. Check your broadband deal still meets your family’s browsing needs.
- Home Loan: It’s a good idea to give your home loan a health check at least once a year to make sure the product is still right for you. The end of financial year could be the perfect time to consider whether negotiating a new rate or switching lenders is right for you.
- Car insurance: Whether you drive a bomb or a sports car, its important that you review your car insurance regularly to make sure it still suits your current needs and budget. You could also be eligible to claim on your car insurance premiums if you use your vehicle for work purposes.
With this savvy EOFY checklist, we hope you can enter the new financial year with a spring in your step knowing you’re not paying more than you need to on your household bills.