The new financial year represents a time to ask questions

Posted by Paul Ryan • 2 July 2014 • Tags:

July 1 represents the start of the new financial year. It is the time of the year people start thinking about their tax returns and financial position.

The 1st of July 2014 was also the first Tuesday of the month which is when the Reserve Bank of Australia meets to discuss interest rate. You would more than likely know by now the RBA decision was to leave interest rates on hold for the 10th consecutive meeting. The cash rate remains at 2.5%

The RBA seems to be seeking a period of stability for the economy.

So what does all this mean for us all? Based on the information coming from the Reserve Rank it seems unlikely there will be a movement in interest rates in the short term. Whilst they may be concerned about some growth aspects of the economy and there seems little likelihood of a rate reduction as they would be concerned about over inflating the housing market.

Figures that reinforce their position were published by RP Data reporting that house prices in 2013/14 jumped by 10% with the Sydney and Melbourne as the capital cities leading the way – see link to report -

So if interest rates are to remain as low as they are the new financial year is the perfect time to reflect on how best to improve your financial position.

Some of the key questions you can ask and seek advice on:

  • Can I afford to pay more money into my home loan to create additional equity?
  • What options do I have in terms of creating additional wealth – is an investment property within my reach as the rental market is quite strong
  • Is there a way in which I can minimise my tax
  • Do we have a budget operating within the home? Is it operating effectively and what improvements can we make
  • One Big Switch.pngDo we have the appropriate utilities account within the home. If not should we look at the buying power of a group like One Big Switch which has over 500,000 members
  • Should I look to be paying more money into my superannuation – do you know where you superannuation is and is it working for you.

There are some many more questions you could ask, they key is to be ask the questions, assess the feedback and make a decision to benefit you as an individual or your family.