June Budget Prep: Set Up Finances for New FY in Australia

The new financial year on 1 July is one of the most underused reset opportunities in the tuckara.com/post/seasonal-australian-budget-recipes-2026" title="Seasonal Australian Budget Recipes 2026: Fresh and Affordable">Australian financial calendar. Most people think about it in terms of tax returns — but it's also the perfect moment to review your financial setup, adjust your saving strategy, and start the new year with your money working properly.

Here's what to do in the last week of May and first week of June.

1. Do Your Pre-Tax Return Prep Now

The ATO opens tax returns from 1 July, but the preparation should happen before then. Gather: your payment summaries or income statements (your employer will lodge these by mid-July), any receipts for work-related deductions (home office, tools, uniforms, professional development), and records of any other income (investment properties, side income, interest earned).

Using a tax agent? Book them now — they get extremely busy in July and August. Lodging via myTax yourself? It's available from 1 July at my.gov.au and takes 30–60 minutes for most people with straightforward returns.

2. Check Your Super Balance and Consolidate

Log into your super fund's website and check your balance. While you're there: check you're not paying multiple sets of fees (if you have super accounts from previous jobs, consolidate them into one account — small balances in old funds can be significantly eroded by fees over time). Check the investment option you're in — the default option isn't always optimal for your age and timeline.

You can check all your super accounts through myGov — link your ATO account to see everything in one place.

3. Review Your Energy Plan Before Winter Bills Hit

Your first winter energy bill will arrive in July or August and it will be larger than your summer bills. The time to act is now, before it arrives. Use Energy Made Easy (the federal government comparison site) or Canstar to compare current plans in your state. Switching providers is free and takes 20 minutes — the saving can be $200–$600 per year.

4. Do a Subscription Audit

Pull up your bank statements from the last three months and look for recurring charges. You may find: streaming services you forgot you had, gym memberships being charged without use, software subscriptions that have auto-renewed, apps with in-app recurring charges. Cancel everything you're not actively using. This takes 30 minutes and the saving is ongoing every month.

5. Set a July Budget

The new financial year is the best natural moment to set or reset a household budget. Start with your actual income (after tax), list your fixed expenses (rent, utilities, insurance, subscriptions, loan repayments), subtract them, and allocate what remains to: savings (aim for at least 10–20%), food, transport, and discretionary spending — in that order.

The budget doesn't have to be elaborate. A simple spreadsheet or the notes app on your phone is fine. The key is knowing what you have to spend before you spend it, not discovering what you spent after the fact.

6. Check If You're Owed a Tax Refund

The ATO's Tax Withheld Calculator at ato.gov.au lets you estimate your likely refund before you lodge. The average Australian tax refund in 2025–2026 is approximately $2,700. If you're owed a refund, plan now what it's for — emergency fund, debt repayment, or a specific savings goal. Having a plan means the refund doesn't disappear into general spending.

7. Review Your Insurance

Home and contents, car, health — all are worth comparing at the start of the new financial year. Comparethemarket.com.au and iSelect both offer insurance comparisons. Many Australians are significantly overpaying for insurance and don't know it because they've never compared. Health insurance in particular can be complex — check your extras usage against what you're paying for and consider whether a cheaper tier serves you equally well.

2. Review and Optimise Your Bank Account Structure

The new financial year is the perfect time to audit your banking setup. Many Australians are still using the same accounts they opened years ago, missing out on better interest rates and lower fees.

High-Interest Savings Accounts Worth Switching To

Compare your current savings rate with these competitive options:

• ING Savings Maximiser: Currently offering 5.50% p.a. (variable) when you deposit $1,000+ monthly and make 5+ eligible purchases with the Orange Everyday account
• Westpac Life: 5.20% p.a. for balances under $30,000 when you deposit $1,000+ monthly
• ANZ Plus Save: 4.75% p.a. variable with no conditions
• Bendigo Bank Term Deposits: Fixed rates up to 4.85% p.a. for 12-month terms

If your current account is earning under 4%, you're potentially losing hundreds of dollars annually. A $10,000 balance earning 1% versus 5% costs you $400 per year.

Banking Fee Audit

Check your statements for these common fees that can be avoided:

• Monthly account keeping fees ($4-15/month) — many banks waive these with minimum monthly deposits
• ATM withdrawal fees ($2-3 per transaction) — switch to banks offering ATM fee rebates
• International transaction fees (2-3% per transaction) — consider travel-friendly cards like Citibank Plus or ING Orange Everyday

3. Set Up Automatic Savings Systems

The most successful savers automate their financial goals. Use the new financial year to establish systems that work without willpower.

The "Pay Yourself First" Automation Setup

Set up automatic transfers for the day after your pay hits your account:

• Emergency fund: $100-500 weekly until you reach 3-6 months of expenses
• House deposit: 10-20% of after-tax income if you're saving to buy
• Holiday fund: $50-150 weekly for your annual break
• Car replacement fund: $30-80 weekly depending on your vehicle's age

Most banks allow you to set up multiple automatic transfers through their apps. Create separate savings accounts with descriptive names like "Emergency Fund" or "Bali 2025" to stay motivated.

4. Superannuation Health Check and Optimisation

Your super balance will appear on your tax return, making June the ideal time for a comprehensive review.

Consolidate Multiple Super Accounts

Use the ATO's online services through myGov to find lost super accounts. The average Australian has 2.8 super accounts, paying multiple sets of fees and insurance premiums unnecessarily.

Before consolidating, check:

• Insurance cover in each fund (you might lose valuable coverage)
• Exit fees from your old fund
• Investment performance and fee structures

Voluntary Super Contributions Strategy

Consider these tax-effective strategies before 30 June:

• Salary sacrificing: Reduce your taxable income while boosting super (concessional cap: $27,500 annually including employer contributions)
• After-tax contributions: Up to $110,000 annually, potentially eligible for government co-contribution if you earn under $58,445
• Spouse contributions: Contribute up to $3,000 to your partner's super and receive up to $540 tax offset if they earn under $40,000

5. Insurance Review and Gap Analysis

The new financial year brings premium increases for many insurance products. Review your coverage and shop around.

Health Insurance Optimisation

Health insurance premiums typically increase on 1 April, but you can switch funds anytime. Compare your current cover with alternatives:

• Hospital cover: Ensure you have appropriate coverage for your life stage without paying for extras you won't use
• Extras cover: Calculate if your annual premiums exceed your claims by more than 15-20%
• Excess levels: Higher excess can significantly reduce premiums if you're healthy

Life and Income Protection Review

Check your super fund's automatic insurance coverage. Many Australians are either over-insured (paying for cover they don't need) or under-insured (insufficient coverage for their family's needs).

Basic coverage through super funds typically costs $200-600 annually but may not provide adequate protection if you have dependents or significant debts.

6. Investment Portfolio Rebalancing

Use the financial year boundary to review and rebalance your investment portfolio.

Tax Loss Harvesting Opportunities

Before 30 June, consider selling underperforming investments to realise capital losses, which can offset capital gains from profitable investments.

Popular low-cost investment options for rebalancing:

• Vanguard Australian Shares Index ETF (VAS): Management fee 0.10% p.a.
• iShares Core S&P 500 ETF (IVV): Management fee 0.04% p.a.
• Vanguard International Shares ETF (VGS): Management fee 0.18% p.a.

7. Debt Management and Refinancing Strategy

Interest rate changes throughout the year make June an ideal time to review your debt strategy.

Home Loan Health Check

With recent rate rises, refinancing could save significant money:

• Compare your current rate with market-leading options (currently around 5.99-6.49% for owner-occupiers)
• Consider switching from variable to fixed rates, or vice versa
• Review your loan features — do you need offset accounts, redraw facilities, or extra repayment options?

Even a 0.25% rate reduction on a $500,000 loan saves $1,250 annually.

Credit Card and Personal Debt Strategy

List all your debts with interest rates and balances. Focus on paying off highest-interest debt first while making minimum payments on others.

Consider balance transfer offers:

• Virgin Money: 0% p.a. for 26 months (3% balance transfer fee)
• Coles Credit Card: 0% p.a. for 18 months (2% balance transfer fee)

8. Government Benefits and Rebates Check

Ensure you're receiving all government benefits and rebates you're entitled to.

Family Benefits Review

• Family Tax Benefit: Payments up to $186.56 per fortnight per child
• Child Care Subsidy: Up to 90% of childcare costs for eligible families
• Parenting Payment: Up to $922.10 per fortnight for single parents

Energy and Utility Rebates

Each state offers different energy rebates and concessions. In NSW, eligible households can receive up to $285 annually through the Low Income Household Rebate.

Frequently Asked Questions

When should I start my tax return preparation?

Begin gathering documents in early June, but wait until mid-to-late July to lodge. This ensures all employer information is available in the ATO's pre-fill system, reducing errors and processing time.

How much should I have in my emergency fund?

Aim for 3-6 months of essential expenses. If your monthly expenses are $4,000, target $12,000-24,000. Start with a smaller goal like $2,000 if the full amount feels overwhelming.

Is it worth switching banks for a better savings rate?

Yes, if the rate difference is significant and you can meet any conditions. However, factor in the time cost of switching and any account keeping fees. Generally, moves that increase your rate by 1% or more are worthwhile.

Should I pay off my mortgage faster or invest the extra money?

This depends on your mortgage rate versus expected investment returns, your risk tolerance, and tax situation. Currently, with mortgage rates around 6-7% and guaranteed tax-free returns through extra repayments, many financial advisers suggest prioritising mortgage reduction.