Approach EOFY sales wisely
You’ll be bombarded with advertisements for all sorts of products in the next few weeks. Shop carefully!
As the end of the financial year (EOFY) approaches, retailers are rolling out significant sales throughout May and June.
From electronics and home appliances to clothing and office supplies, many items are heavily discounted, making it an appealing time to shop.
For some, it’s also a chance to purchase work-related items that may be tax deductible. However, for older Australians, particularly those who are on fixed incomes and/or are no longer required to lodge a tax return, it’s important to remember that not every “bargain” is truly good value.
EOFY sales have become a major retail event, often second only to Boxing Day in terms of discounts and promotional hype. It’s easy to get swept up in the excitement, with stores promising limited-time offers, “never to be repeated” prices, and bundles that appear too good to pass up.
For those still in the workforce or running a business, certain purchases such as computers, tools, or home office equipment might be eligible for tax deductions. But this only applies if you’re required to lodge a return and the items are genuinely used to earn income.
For pensioners or self-funded retirees who no longer have to submit a tax return, the concept of a tax-deductible purchase might be irrelevant. In this case, the real question becomes: do you actually need the item, and are you genuinely getting a good deal?
Before making a purchase, it’s worth doing a little research. Compare prices across retailers, check reviews, and take a moment to consider whether the product will truly add value to your life.
A 50% discount sounds great – but if it’s something you wouldn’t have bought otherwise, it’s still an expense. For those on fixed incomes, it’s especially important to weigh each purchase carefully and avoid falling into the trap of impulse buying.
EOFY sales can be an excellent opportunity to replace something you genuinely need at a reduced cost. Whether it’s updating your mobile phone, replacing a worn-out appliance, or investing in a comfortable new chair, timing your purchase can certainly pay off.
But the golden rule remains: just because it’s on sale doesn’t mean it’s a saving.
Shop mindfully, know your financial limits, and make sure it’s something you truly need. A real bargain is one that fits both your budget and your lifestyle.
