With the rising cost of living top of mind for many Australians, the new year is an ideal time to get started on improving your financial health. 

financial checklist

Research by CBA shows nine in 10 Australians have a financial goal for the new year, and reducing living expenses tops the list for about half of them. One in two Australians also want to spend less on non-essential items, while about four in 10 want to increase savings and find ways to earn extra income.

This ultimate financial checklist by Morningstar's director of personal finance Christine Benz can help you get there, one job at a time. 

"The myriad of tasks associated with planning an organised financial life seem daunting in list form, but they're more manageable when spread throughout the year," Benz says.

Your annual financial to-do list:


The checklist includes both time-sensitive tasks, such as tax returns, as well as other jobs that can be tackled in any order.

January - March


1. See how you're doing


Benz says the new year is a good time to check your portfolio balance and see if you're still on track to hit your financial goals.

"If you're still in accumulation mode, review how much of your salary you managed to save and invest last year; 15% is a reasonable minimum target, but reach for a higher percentage if you're a higher income person/household," she says. 

It's also a good time to check in on your progress towards your retirement savings.

The Australian Securities and Investments Commission's Moneysmart superannuation and retirement planner calculators estimate how much super you'll have when you retire and your likely retirement income.

2. Review your super


Superannuation is one of the most effective vehicles for Australian investors saving for their retirement, offering favourable tax rates, compulsory contributions going in from employers, and difficult conditions of release means it's less likely to be accessed early.

Morningstar investment specialist Shani Jayamanne says reviewing your super is a small investment of time that can result in a large return.

Simple steps like consolidating your super accounts (if you have more than one), reviewing your insurance and asset allocation can have a big impact on your retirement outcomes, she notes. 

"It’s important to understand the asset allocation mix that you are invested in, as it will determine your retirement outcomes," Jayamanne says. 

3. Review your investments


If you haven't checked up on your investments for a while, Benz suggests undertaking a portfolio review to get a pulse check on your portfolio's allocations to the major asset classes. 

"Despite weak stock returns in 2022, many investors may still find themselves heavy on stocks relative to their targets for two key reasons: Bonds fell last year, too, and stocks crushed bonds in the decade leading up to 2022," she says.

Simon Grant, group executive for advocacy at Chartered Accountants Australia and New Zealand, suggests exploring your investment options, such as shares, bonds, managed funds and property.

"While it can be overwhelming to explore, it is worth doing your homework and assessing what potential investment options are right for you," Grant says. 

4. Find your best return on investment


Benz advises finding your best return on investment, whether that’s investing or paying down debt.

"The most successful investors consider their total opportunity sets - including not just investments but also debt paydown."

She notes an individual’s capital allocation decisions will depend on factors such as life stage and the interest rates on debts versus the expected return on investments.

Prioritising paying off high-interest debt, like credit cards, is likely to provide a better return for your money. 

5. Avoid the loyalty tax


Home loans, private healthcare, car insurance, utilities - regardless of the service, the best deals are typically offered to new customers. 

Rather than paying what's known as the loyalty-tax, compare your policies and loans through a comparison site or mortgage broker. Don't be afraid to switch providers. The difference could add up to thousands of dollars a year - money that could be used to invest, or simply enjoy. 

April - June


6. Increase your super contributions


Once the costs of the festive season have passed, check in on whether you're making the most of superannuation contributions.

"If you're not making the maximum allowable contributions to these accounts, see if you can't find room in your budget to elevate how much you're putting in," Benz says. 

Remember, there are limits to the amount of super you can contribute each year. Exceeding this limit may mean paying extra tax.

7. Put savings on autopilot


Grant recommends setting up an automatic transfer of your nominated savings amount on pay day.

"In an ideal world, people would aspire to save 10-15% of their net income,” he adds.

Benz also suggests putting your investment contributions on autopilot via automatic transfers.

8. Assess your emergency fund


Unexpected expenses can crop up no matter your life stage, making it essential to hold liquid reserves, Benz says.

"For most households, holding three to six months' worth of living expenses in true cash instruments is a good starting point, though people who earn high salaries, have volatile earnings streams, or are the primary earner in their household will want to hold more," she says.

Grant says people should aim to build at least three months of their income as an emergency fund in their savings.

9. Assess your liquid assets if retired


Benz says retired people will want to hold even more cash, in case one of their income sources is disrupted for some reason.

"Knowing their near-term income needs are covered can also help retirees ride out volatile times with their long-term portfolios. The year 2022 was a perfect case in point," she says. 

10. Conduct an EOFY portfolio review


While you’ve no doubt paid some attention to your portfolio throughout the year, Benz says the end-of-financial-year is a good time to give it a thorough checkup.

"If you own investments that have lost value, selling to generate a tax loss is a way to find a silver lining," Benz says. 

July - September


11. Tax season starts


You can lodge your tax return from July 1, but the Australian Taxation Office advises waiting a few weeks. From late July, most information from employers, banks, government agencies and health funds will be automatically pre-filled into tax returns.Check the information and add anything that's missing plus your eligible deductions.

Benz suggests getting an early start on gathering tax documentation and checking in with your tax professional.

12. Evaluate your portfolio


Benz says midyear is a good time to conduct a portfolio checkup.

"Focus on the fundamentals of your plan and your portfolio, including asset allocation, whether your savings and spending rates are on track, and salient changes with your holdings."

She says it's also worthwhile assessing the costs you're paying to keep your portfolio running and its tax efficiency.

13. Look at investment and retirement policy statements


"Running your portfolio without an investment policy statement is a little like trying to build a house without any blueprints," Benz says.

But she says it doesn't need to be complicated.

"Financial advisors often prepare complicated investment policy statements for their clients, complete with appendixes, footnotes, and legal disclaimers. But yours needn't be overwrought," Benz says.

It should include your financial goals and expected duration/completion, your asset-allocation policy, your criteria for selecting investments and how you'll monitor it.

Benz says retired people should also craft a document addressing their spending strategies and their investment approach.

14. Review your estate plan


Benz says a basic estate plan - covering who will inherit your assets, be a guardian for minor children and make important decisions on your behalf if you cannot make them yourself - is a must for people at all life stages and wealth levels. She also suggests reviewing your superannuation beneficiaries and your plan for long-term care.

October - December


15. Beat the tax return deadline


Taxpayers need to either lodge their returns themselves or appoint a registered tax agent by October 31.

Benz also suggests using tax time as a reminder to get your financial paperwork organised and sorting out what old documents you need to keep or can shred: 

"Tax time has a way of reminding us of the shortcomings of our filing systems for financial paperwork. While the pain of digging around for the documents you need is still fresh, resolve to get organised," Benz says. 

"If your file drawer is bulging with old statements, prospectuses, and utility bills from 2003, it’s time to do some culling."

She recommends storing very hard-to-replace documents, like birth and wedding certificates, in a safe-deposit box or fireproof box.

16. Go paperless


Your financial providers have probably been badgering you for years about switching over to electronic delivery of your statements. It’s time to take them up on it.

"After all, each piece of financial documentation that passes through the mail puts you at greater risk of financial fraud," Benz says.

"You’re likely paying extra fees for paper document delivery, too."

17. Create a master directory


Benz says every household needs a basic document outlining financial accounts, along with the provider name, account number, URL, and the names of any individuals they work with.

"You can create a simple spreadsheet or use a preprinted template," she says. 

"Whatever you do, encrypt your document (or keep it under lock and key) and alert a trusted loved one of its existence."

18. Review your insurance


Benz says year-end is also a good time to check on health and other types of insurance.