With the end of another financial year now behind us, knowing how to maximise your tax return can go a long way in getting back your hard-earned money. Many people miss out on potential deductions either through not knowing or simply being disorganised. The main thing you need to do is stay calm, as the end of financial year (EOFY) can seem daunting even with the best tax return tips. Just remember not to leave your tax return until the last minute; doing so could cost you more than just some lost deductions.
We’ve come up with seven essential tax tips to help you increase your balance at EOFY and go into the new one feeling great. If you feel like your debts are making it too hard to concentrate, then we can help. To find out what our team can do to assist you, please visit our debt solutions page now.
Work out your tax bracket
First on our tax saving tips guide is making sure that you work out your tax bracket accurately. Without knowing your tax bracket, you won’t understand the full extent of your tax obligations.
For example, the Federal Budget 2017 brought in changes for tax payers in some certain brackets. If your taxable income is below the threshold of $21,655 for singles, $36,541 for families, and $34,244 for pensioners then you won’t have to pay the Medicare levy.
If you need a little help to find out exactly what bracket you’re in, simply head over to the ATO website now.
Dig out all your old receipts
Receipts are something that are very easy to lose so you have to establish a system. But, if you’ve got a few that you’ve kept safe they could help maximise your tax return and claim back some money. You’ll be surprised at how many things you can claim on that you might be unaware of.
Moving forward you should try to file away every relevant receipt and talk to your accountant to find out exactly what you’re able to claim on. Thankfully, there are now apps available that help you to digitise receipts if you prefer a modern solution to keeping them safe.
Make a charitable payment or two
Making a charitable payment is a great way of reducing your taxable income and doing a good deed at the same time. To help you get out ahead in the next EOFY you could always consider setting up a monthly donation to a charity of your choice.
Claim your deductions to maximise your tax return
Well, although this seems like one of our more obvious tax return tips, it’s surprising how many Australian workers fail to claim their deductions. There are all kinds of things that you can claim on, such as work-related travel expenses, clothing, items and much more.
While there are others, we’ve listed some of the more common deductions for you to take advantage of. Always check in with your accountant to find out exactly what you can claim on in more detail.
Car allowance expense
If you’re someone who uses a car for work then it’s possible that you can claim the expenses of running your car. This is because it will come under a business cost.
However, you have to own your car if you’re applying for car allowance deductions. It’s also important to note that the Australian Taxation Office has said this doesn’t apply to the costs of your daily commute to work.
As there are a few different ways to calculate your car allowance, it’s best to speak with your accountant to establish which method is best for you.
Home office expenses
You may be entitled to claim on a number of home office expenses if you work from home as a self-employed person or work from home for an organisation. This is where keeping receipts safe can really come into play and help you claim back your hard-earned money. Home office equipment, business phone calls and line rentals, utilities, repairs and fittings, and cleaning expenses can be claimed as home office running costs. Get in touch with your accountant to find out what’s possible for you to claim on.
If you’ve decided to take a course to become certified in something related to your work, then you have another potential deduction to make on your tax return. Remember to keep hold of any invoices as this will serve as proof of your enrolment on an educational course.
Looking for help?
Have you read through our tax tips but remain worried about the debts that are hanging over your head? Read on for 5 more ways to maximise your tax return this year. If you’re looking for help with a tax debt and want to learn how you can regain your financial freedom, please call contact our experienced team now on 1300 368 322. We’re here to help!