June 01, 2018 by Kristen Hills
How tax-savvy are you? With more and more Australians opting to complete their tax returns online rather than seek assistance from a professional accountant, it’s now more important than ever before that we understand what we can and cannot claim.
In addition to ensuring a maximised refund, knowing where you stand can also help to avoid any oversights that may land you in hot water with the ATO. So if you’re planning to complete your own tax return this year, here are 5 of our top tips to maximise on tax and boost your refund:
- Get in early
When it comes to tax time, there are generally 2 types of people: those you start preparing months in advance and those who wait until the very last minute. Whilst it can be a tedious task to complete, organising your paperwork and receipts early can mean you’ll be better off when tax time does roll around. Rather than leaving your refund to accrue interest in the hands of the ATO, completing it early can help to boost your bottom line. Planning ahead and knowing your budget constraints can also allow you to pay off more expenses before June 30, allowing you to increase your claimable expenses and ultimately, your overall tax return.
Signing up for private health insurance is another great way to boost your refund at tax time. This is due to the Medicare Levy Surcharge (MLS) which is payable by singles who decide not to take out cover and are earning over $90,000 a year. In addition to safeguarding your health, having private health insurance will decrease the surcharge you’re required to pay in the first year and will allow you to completely avoid it in years to come.
Did you know that any voluntary super contributions you make come out of your before-tax income? Essentially, this means they are not counted as assessable income for tax purposes. While salary sacrificed contributions are taxed at a rate of just 15%, contributing extra funds towards your super prior to tax time can help you reduce your tax payable and increase your wealth for the future.
Personally-funded income protection is another great way to boost your tax return. As a claimable deduction, paying your annual premiums in full before June 30 will mean the ability to claim all fees in your upcoming tax return. If, however, your income protection is paid through your superannuation fund, then you will be unable to claim this cost.
One of the benefits of having an investment property is the ability to claim a wide range of fees and expenses at tax time. Whilst many investors are unaware of the extent to which they can claim, claiming on every applicable cost can greatly assist in boosting your tax return. Of course, investment property claims can be a little confusing, especially if you you’re new to the practice, so contacting an expert can ensure you get the greatest return possible.
Some of the expenses you may be able to claim include:
- Real-estate Agent fees
- Body Corp fees
- Advertising costs
- Repairs & maintenance costs
- Cleaning expenses
- Various types of insurance
- Mortgage fees
- Interest charges
- Council & other rates
- Travel costs (property inspections)
- Depreciation deductions
If you need a little extra mortgage or financial advice, whether related to tax time or otherwise, get in touch with experienced and reputable broker Kerry Wicks from Mortgage Choice Alex Hills today on 07 3820 2688 or online here.
