Although the start of a new financial year may not be a cause for celebration for many, it presents an ideal opportunity to look back on the past and, more importantly, prepare for the future – especially when it concerns your investment portfolio.
Here are some of our top tips to help you prepare for tax time and the new financial year.
1. Check that your personal information is up to date – to avoid unnecessary processing delays and ensure timely receipt of your tax statements, check that your personal information is current. This includes your address, Tax File Number, and tax residency status with the share registries. You can check and update your details in Link Market Services and Computershare, or by contacting us at 1300 851 779 or emailing us at [email protected]. You can also refer to our helpful Share Registry Guide.
2. Decide how you’ll lodge your tax return – will you use a registered tax agent or do it yourself? Hiring a licensed tax agent to assist you in filing your tax return could not only reduce the chances of facing penalties from the ATO but also alleviate any tax-related stress you’re feeling.
3. Set time aside if you’re completing your tax return yourself – the more organised you are, the less stressful the process will be. We suggest blocking out some time in your diary in advance.
4. Gather all your documents in one place – as part of Six Park’s service, you will receive consolidated tax reports from Six Park by the end of September. If you’d like to complete your tax return sooner, you can use the individual tax statements from each ETF issuer. These will be sent to you via post or available via your online account with Link Market Services and Computershare. If your details are current, your ATO portal should also be pre-filled with tax information from the ETF issuers.
5. Consider setting up a savings plan for the next financial year – if you have the financial capacity to add to your investment portfolio, consider setting up regular ongoing contributions to your investment portfolio. Read more about the benefits of regular investing and dollar cost averaging.
6. Consider dividend reinvestment – if you’re not already reinvesting your ETF dividends, electing a dividend reinvestment plan may be the right choice for you. Read more about dividend reinvestment.
Tax time doesn’t have to be stressful – having a clear plan in place can help you manage it effectively. Although Six Park cannot offer personalised tax advice, our consolidated tax statement brings together the data from various ETF issuers, simplifying the process of preparing your tax return.
This article may contain general financial product information but should not be relied upon or construed as a recommendation of any financial product. This information has been prepared without taking into account your objectives, financial situation or needs.
For further details on our service please see our Financial Services Guide at http://www.sixpark.com.au. Past performance is not a reliable indicator of future performance.