How to avoid the next tax panic THE end of the calendar year is always a time for celebration and relaxation in Australia's warm climate. The Australian new year brings the summer holidays, with a fresh set of resolutions. But the end of the financial year in Australia -- next Thursday -- is a much more sober time. Coming in the dead of winter, it is no time for celebration. There is a last-minute rush by some to get a few things done before the June 30 deadline. There's the frantic call to the accountant. Now is the time to bring forward tax-deductible expenses, make that end-of-financial-year donation to your favourite charity and delay income where possible into the new financial year. Now is the time to make sure pre-tax super contributions don't break through the magic figure ($25,000 for those under 50 this financial year and $50,000 for those over -- including any 9 per cent contributions by employers). The Australian Taxation Office has warned that many people will have an extra pay day this year, which may tip them over the limit and mean heavy penalties. There's just time to look at offsetting any capital gains on shares sold during the year by selling off some dogs from the portfolio. Post June 30, there's a slight breather until the group certificates are done -- then it's on in earnest. Time to roll the sleeves up and do the actual tax returns. It's a tough job -- the great scramble for group certificates, tax receipts and other paperwork -- with most Australians turning to accountants or financial advisers for help. There's the frustration over paperwork not kept, the cold, hard realisation of one's financial position, all written down in black-and-white and destined for the Deputy Commissioner. Then it's all over for another year. What most Australians should do immediately after this, with the full reality (maybe horror?) of their personal financial position still fresh, is to sit down and make their own new-year fiscal resolutions. There are a lot of ways people waste their own money by sheer apathy. The first thing to do is pay down debts with any spare cash, particularly high interest rate debt. Anyone who has high credit card debt and spare cash is barking mad. Pay off the credit card bill and any personal loans before almost anything else. Shop around for the best home loan, particularly the best interest rate deal. The end of exit fees on mortgages will make it easier for people to shop around to see if they can get a better deal on their home loan. Take a look at where your cash is. Don't leave large amounts of money in a cheque account or a low-interest savings account. There are lots of deals out there for online interest accounts and higher interest term deposits. Online accounts mean that you can keep spare cash in a higher interest account and then move the money back into a cheque account when payments are due. The upside of Australia's higher interest regime is that there are a lot of higher interest rate deals around for savers. But be aware that a lot of online savings accounts often have teaser rates to attract new customers. These can go down after the first six months. So be prepared to shop around and keep on shopping around for higher interest rate accounts. Set aside time to consolidate all your superannuation accounts. Unless you have a self-managed superannuation fund or are not working, your superannuation guarantee money will be paid regularly into the financial organisation that manages your account. If you are happy with this organisation, approach them for help in tracking down any lost super accounts. They benefit because they get to manage more of your money. Changes that come into effect on July 1 will make it easier for financial organisations to track down super accounts using a person's tax file number. Even if you are considering changing your current super provider, you might use them to first help you consolidate your super money. Understand the difference between an accountant and a financial planner. An accountant can advise you on your tax position and tax-effective decision making. They cannot advise on financial products or how to invest your money. Maybe after your tax return is done, make an appointment with your accountant to discuss how you could manage the tax side of your affairs in a better way. Commissions paid to advisers are being phased out for wealth products, but not for insurance products. If you have a financial planner, ask them how they are being paid. If your financial planner has moved from charging commissions to "fee for service," ask them exactly how this works. If they are proposing a fee that is a percentage of the amount of money managed, be prepared to negotiate a fee scale. The more money they are managing, the lower the percentage of fees should be. This is the way business works, and consumers in the new world of "fee for service" will have to wise up as well. Prepare 10 new year financial resolutions. Act on them and, then, as you approach the summer holidays you can sit back, relax and enjoy the flight.