What is happening this week in the market?
The Australian sharemarket has added to its 2 per cent losses from Tuesday, sinking for a fourth straight session as Brexit worries continue to create havoc on the global markets. At the 4.15pm (AEST) official market close, the benchmark S&P/ASX 200 index was down 56.2 points, or 1.08 percent, to 5147.14, while the broader All Ordinaries index had weakened 52.1 points, or 0.99 percent, to 5230.4.
Investors were also cautious ahead of the US Federal Reserve's interest rate decision and accompanying statement tomorrow morning (Australian time) despite markets pricing in an only 2 percent probability of a rate hike. It's getting closer and closer to tax time, and news from the ATO is that they will be focusing on Australians with rental properties and work-related expenses such as cars, mobile phones, broadband, and travel.
What does this mean for you?
It's been an ugly week on the share market due to the uncertainty around Britain leaving the EU, but this is certainly not the time to start to panic and move into selling mode. The markets often go through periods of uncertainty, and this is no different. Hold on to your long term investment plan and use the drop to drip-feed in cash if you can.
While we all want to maximise our tax savings, be aware that the Tax Office has different areas they focus on each year. Claim what you can and just don't go overboard with "fudging" your expenses. If you're in doubt about what you can and can't claim, don't hesitate to contact us.