This might be news to you – it's definitely slipped the mind of about two million Australians – but October 31 is the deadline for people lodging their own tax return to get their affairs in order.
The Australian Taxation Office just last week said that more than two million Australian taxpayers were yet to lodge their tax returns, and gave them a nudge that they needed to get it done, or at least be registered with their tax agent by October 31 to avoid possible penalties.
ATO Assistant Commissioner Rob Thomson said that regardless of how people lodge their returns, October 31 was a crucial date.
As he said:
If you're lodging yourself, you need to have completed and submitted your return by 31 October. If you plan to lodge through a registered tax professional, you must be on their books by 31 October.
Personally, I usually can't wait to lodge my tax return. I usually get something back and it's a great opportunity to have a think about what I can invest it into.
This year, like many others, I'm thinking ETFs – an increasingly popular, low-effort way to diversify your holdings and hopefully lock in some good returns.
I've had a look at a few on offer, and while this is certainly not financial advice – please do your own research and get advice on what best suits your needs – these are the ones which have piqued my interest.
Betashares Australian Small Companies Select ETF (ASX: SMLL)
Over the years as a business reporter, I've seen plenty of smaller companies grow into larger entities. Adelaide company Codan Ltd (ASX: CDA) is a great example, with a market cap now of more than $6 billion. Small and medium-sized companies, while they sometimes lack the scale and market dominance of their larger competitors, also have more room to grow, and smaller news events can move the needle much more. This ETF has delivered a five-year annualised return of 10% and 15.9% over three years, and personally, I like small caps for their ability to surprise.
Betashares Australian Resources Sector ETF (ASX: QRE)
There's something in the air when it comes to commodities at the moment. While iron ore has its issues with China pricing and supply, rare earths are running hot, gold investors are killing it, and governments are increasingly concerned about the sovereign supply of resources. While with a 20.57% return over the past six months, this ETF is running hot, and I just can't go past the idea that Australian miners are still a good investment.
Betashares Australia 200 ETF (ASX: A200)
Nothing beats diversification, right? And this ETF claims to be the world's lowest-cost Australian shares index ETF, with management costs of just 0.04%. This ETF tracks the S&P/ASX 200 Index (ASX: XJO) as the name suggests, and pays out distributions quarterly, which can be reinvested. If you like the Australian market, there's nothing not to like here.
Betashares Crypto Innovators ETF (ASX: CRYP)
This ETF is a bit more of a gamble on an emerging industry, and one I'd place in the higher risk category in my mind. As the name suggests, the ETF "provides exposure to global companies at the forefront of the dynamic crypto economy''. But with high risk comes high reward, and the performance to date has been impressive, returning 84% over a year and 47.8% over three years, annualised.
As always, do your own research, and happy investing!
