End of financial year, your credit card and you

Information verified correct on September 27th, 2016
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The end of financial year splurge: your guide

The end of the financial year is nigh and the sales we know and love are around the corner, so here’s Finder’s guide on how to make the most of it all.

The 2012 – 2013 financial year ends on June 30, signalling the return of tax time for individuals and businesses around Australia.

It also means retailers will be trying to push as many items as they can out of their doors using sales and discounts, and most of us will be sending off our tax statements and hoping for juicy returns.

Follow the tips below to make the most of the sales and get your financial year on track. We also spoke to James Gerrard, a certified financial planner, to help you get your bearings this end of financial year, so get reading!

Use an interest free credit card. Going overboard on sale items is one thing, but going overboard on sale items when you don’t need them and paying interest on them is another. Do some soul searching and make sure the purchase is something that’ll get you to your goals and is within your means. If it is, you may want to consider paying for it using a credit card with an interest free promotion, especially if you don’t think you’ll pay off your balance within your regular interest free days. Interest could see you lose much of the savings you made in the first place, so be sure you can pay your purchase off before interest is due.

Before you apply for any card with an interest free promotion take ten minutes to compare what’s in the market. It’s not difficult, and could see you get a card with better features than what you already have.

0% Credit Card Comparisons

Credit cards can make it easier next end of financial year. If the thought of organising your tax deductions is already frustrating you and you’re disciplined enough with your spending, there’s a simple remedy – a credit card. Having a designated credit card you only use to pay for deductible expenses is one way to provide proof of these purchases when it comes to scoring some deductions. If you don’t already have one you can compare them here.

Reap rewards. If you’ve got a rewards card, you can pay for your end of financial year purchases with it rather than cash, and earn rewards points. Just be sure you’ll be able to pay off the balance before interest kicks in or those rewards points will be worth nothing.

Rewards program offers. Credit card rewards programs also have sales at the end of financial year. The Qantas Frequent Flyer program is usually strong in this regard, and has previously offered as many as 10,000 bonus points for booking discounted holiday packages through Qantas Holidays. We’re hoping Virgin’s Velocity program also has its fair share of end of financial year discounts this year too, so check out your respective program’s website for more information.

Look at all of your options. End of financial year sales aren’t limited to department and retail-chain stores. Online stores and smaller retailers are also gearing up to clear stock, so get a list of what you need and be sure to compare the retailers before you pull out your hard-earned money.

Information on online bargains

Use your tax return wisely. If you’re one of the lucky ones who gets your tax return early enough to use during the sales, spare a thought before you do. If you didn’t need the item before the sales chances are you don’t need it now.

Expert help

James Gerrard

  • James Gerrard is a certified financial planner.
  • James was a finalist in the Australian Financial Planning Association of Australia’s 2009 Value of Advice Awards.
  • James was a member of the AFR Smart Investor Magazine’s 2010 Masterclass for Financial Planning.
  • You can find out more about him at www.financialadvisor.com.au.

How can consumers avoid going financially overboard at the end of year financial sales this year?

Just remember that sales occur several times [a year] and it’s usually end of season and discontinued items that are substantially discounted.

Most desirable it ems are usually excluded from the sales or only marginally marked down, so most of the time, if you research and shop around, you’ll be able to get a great deal (and better than the sales) any time of the year.

What’s the ideal way to make use of the end of financial year sales?

Go to the sales with a list of what you want, a budget and discipline. Don’t be the person who goes to Myer for a new pair of jeans and come out with handfuls of bags and a new wardrobe.

Go to the sales with a list of what you want, a budget and discipline. Don’t be the person who goes to Myer for a new pair of jeans and come out with handfuls of bags and a new wardrobe.

So if you’re after a new pair of shoes for example, and are not too fussed about a specific brand or style, going to the sales might be a good way to save money and buy a pair while the sales are on.

Also, some shops offer interest free finance which you can take advantage of. The only disadvantage is the massive interest rate that applies if you do not pay for the item by the end of the interest free period. But as long as you plan for this properly and don’t go beyond the interest free period, this can be a good way to purchase items.

How can those in debt use the end of the financial year to get their finances back on track?

Make a new financial year resolution!

Look at how much you earn, how much you spend, and set goals for each month about how much money you could put aside. Once you have determined this amount, every time you get paid, the first thing you do is transfer money to the debt so you don’t ‘miss’ that money after a while.

How can you decide what to do with your tax return if you receive one?

That’s a hard one and depends on specific situations, but generally pay off the highest interest debt, work your way down, and if anything is left, save.

Generally the order from highest interest to lowest is as follows:

  • credit cards
  • personal loans
  • car loans
  • home loan
  • savings account.

Any other tips for consumers this end of financial year?

The Australian dollar is falling and expected to continue to fall which will make it more expensive for importers to bring items into Australia over the next 12 months. These increases are generally passed onto consumers. So if you’re looking at buying a larger item like a fridge or washing machine over the next 12 months, the current sales may be a good time to purchase.

Also remember, if you spend more than $1,000 overseas on an online purchase, that item will attract duty and taxes when received in Australia so you need to factor that into the total purchase cost as you would shipping.

Compare your EOFY Credit Card Options

Rates last updated September 27th, 2016.

ANZ Low Rate

This balance transfer offer has been extended by ANZ for the foreseeable future.

January 13th, 2016

ANZ Frequent Flyer

removed FYF offer + extended 25k bonus points offer

June 15th, 2016

St.George Vertigo Visa

Balance transfer has been extended to 29 September 2016 + 1% for 12 months on purchases.

June 24th, 2016

View latest updates

Jonathan Choi Jonathan
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
ANZ Low Rate
Save with a low rate on purchases and balance transfers with a low annual fee and ongoing purchase rate.
13.49% p.a. 0% p.a. for 18 months with 3% balance transfer fee $58 p.a. Go to site More info
Citi Clear Platinum Card
A low rate platinum credit card with a low interest rate on purchases and balance transfers.
0% p.a. for 9 months (reverts to 14.99% p.a.) 0% p.a. for 9 months $99 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
ANZ Frequent Flyer
Receive 25,000 bonus Qantas Points after your first eligible purchase is made within 3 months of card approval, enjoy easy payments using Apple Pay and earn 1 Qantas Point per dollar spent.
19.99% p.a. $95 p.a. Go to site More info
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Marc Terrano

A passionate journalist who loves to tell a story. Learning and teaching personal finance is my main lot at finder.com.au. Also enjoys video games and fitness.

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2 Responses to End of financial year, your credit card and you

  1. Default Gravatar
    graham | June 20, 2013

    can age pensioners get a credit card

    • Staff
      Marc | June 20, 2013

      Hello Graham,
      thanks for the question!

      Age pensioners are able to apply for most credit cards. The credit approval process will take into account your income, debts and liabilities, and your credit file to assess whether or not you’ll be able to make your minimum monthly repayments. One option is to consider a credit card with a lower income requirement, and these can be found here.

      I hope this helps,
      Marc.

Credit Cards Comparison

Rates last updated September 27th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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