The beginning of a new financial year is the perfect time to evaluate your financial plan. July is an opportunity to reassess your budget, review key financial elements such as insurance, superannuation strategies, and estate planning. By understanding where you stand financially and looking forward to the year ahead, you can set yourself up for success.
This guide focuses on four essential areas of your financial health that deserve a review every July—budgeting, insurance policies, superannuation contributions, and estate planning.
Why Reviewing Your Financial Plan Matters
A sound financial plan provides more than just peace of mind; it ensures your financial decisions align with your short- and long-term goals. Without regular reviews, important aspects of your financial life can fall behind, leaving you unprepared for unexpected events or opportunities.
July, marking the start of Australia’s financial year, is an ideal time for this evaluation. It allows you to plan ahead while considering any legislative or taxation changes introduced during the previous year.
- Examine Your Budget for Cash Flow Clarity: Your budget is the foundation of your financial stability. By reviewing it each July, you can adapt to changes in income, expenses, or financial goals. This step ensures your cash flow aligns with your lifestyle and savings objectives.
- Assess Your Income and Expenses: The first step in your budget review is an honest look at your income and expenses. Has your income changed due to a new job or additional streams of revenue? Are there any recurring expenses that you can reduce or eliminate?
- Plan for One-Off Expenses or Goals: Large one-off expenses—such as upcoming holidays, school fees, or home improvements—should be factored into your budget early. Similarly, set financial goals such as paying off debt or building an emergency fund.
Review Your Insurance Policies
Insurance shields you and your loved ones from financial hardship in the face of unexpected events. July is a great time to ensure your insurance coverage aligns with your current circumstances.
- Evaluate Life Insurance Coverage; Life insurance is essential for protecting your family in case of your passing. Has your coverage kept pace with your existing financial obligations, such as mortgage repayments or dependent care?
- Check Health and Income Protection Insurance: Private health insurance is important in ensuring access to quality healthcare in Australia’s system. Additionally, income protection insurance is vital to maintaining your financial independence during periods of extended illness or injury.
- Review Home, Contents, and Vehicle Insurance: The value of your possessions and property can fluctuate. Update your home, contents, and car insurance policies to reflect any major changes, ensuring you’re neither underinsured nor overpaying.
Plan Ahead for Superannuation Contributions
Superannuation is one of the most tax-effective ways to save for retirement. July provides a fresh opportunity to plan for contributions while staying within contribution caps.
- Understand Your Limits: For the 2025–26 financial year, Australians can contribute up to $30,000 per annum in concessional contributions (e.g., salary sacrifice) and $120,000 per annum in non-concessional contributions (after-tax).
- Consider Maximising Your Salary Sacrifice Opportunities: Speak to your employer about salary sacrificing part of your income. This reduces your taxable salary while boosting the growth potential of your superannuation fund.
- Check Benefit Nominations: Ensure your superannuation beneficiary nominations align with your current intentions. Outdated nominations can lead to disputes or unintended distributions.
Revisit Your Estate Planning
Your estate plan directs how your assets will be managed during your lifetime and distributed upon your passing. A July review ensures this critical component of your financial plan remains current.
- Update Your Will: Your will should reflect your current family dynamics, financial situation, and intentions. Simple updates—like including a new child or removing a former partner—can prevent significant issues.
- Review Enduring Powers of Attorney and Guardianship: These appointments grant trusted individuals the authority to make financial, legal, or personal decisions if you become incapacitated. Review these roles regularly to ensure they still align with your needs.
- Align Your Super Beneficiary Nominations with Your Will: Superannuation funds often fall outside your will’s jurisdiction. Ensure your super beneficiary nominations are legally binding and align with the rest of your estate plan.
Taking Action
By incorporating these essential reviews into your broader financial planning process, you ensure clarity, protection, and growth for the year ahead. Here are some actionable steps to take immediately:
- Schedule a Meeting with an Adviser: An experienced financial planner or estate planning specialist can help identify gaps and inefficiencies in your plan.
- Centralise Key Documents: Organise your updates into one secure location, ensuring you and your family can access them when needed.
- Mark Your Calendar for Next Year: Turning your financial plan review into an annual tradition ensures you never fall behind.
Secure Your Financial Future
A comprehensive financial plan review every July is a proactive way to ensure fiscal health and peace of mind. By examining your cash flow, insurance policies, superannuation contributions, and estate plan, you can prepare for opportunities, mitigate risks, and achieve your goals.
This financial year, take charge of your financial future—it’s a commitment that pays dividends for years to come.
If you would like to improve your current investment strategies or are looking to start your investment journey, click here to organise a complimentary 20-minute phone call with an EPG Wealth adviser.