Get your finances in order this new financial year
Top tips to maximise your tax refund
The beginning of a new financial year is a great time for Australians to get their finances in order and make their money work harder for them.
Local Mortgage Choice franchise owner Des Nation said Australians can take significant steps now to help them maximise their tax refund, thus helping them to achieve their financial goals sooner rather than later.
“If you wish to maximise your tax refund, it is really important to know what you can claim and what you can’t. Many people have no idea that they can claim a tax deduction on petrol or home office expenses,” Mr Nation said.
“You don’t have to run a business from home to claim things like stationary. Rather, you just need to have a dedicated place to work at home.
“Similarly, many property investors don’t realise that they may be able to claim for a range of expenses, including agents’ fees, advertising, body corporate fees, capital expenses, building maintenance and repairs, cleaning, insurances, home loan fees and interest payments. Don’t forget council and water rates, plus the cost of travel to and from the property for inspections can also be claimed.
“One aspect that property investors often overlook when lodging their tax return is depreciation deductions. Depreciation applies to new and existing residential properties and in most cases owners of an investment property or properties are likely to be able to claim something.
“Everyone’s situation is different, so it is important to consult a financial adviser to help determine any tax deductions.”
Of course, while it is important to do all you can to maximise your tax return, Mr Nation said now is also the perfect time to review your current financial situation and introduce changes that can not only help you to improve next year’s tax return, but your overall financial position.
“Part of good tax management involves making plans for the year ahead rather than facing a last minute rush,” he said.
Mortgage Choice provides the following tips for Australians moving into the new financial year:
Formalising salary sacrifice super arrangements: Making salary sacrificed super contributions offers a simple way to save on tax and build wealth. It involves having part of your before-tax salary paid into your super rather than taking the money as cash in hand. These contributions are taxed at 15%, which is likely to be below your marginal tax rate (which could be as high as 46.5%), so more of your money goes towards growing your super rather than paying the tax man. Up to $25,000 annually can be added to super through pre-tax contributions ($35,000 if aged 60-plus). This limit includes your employer’s compulsory contributions.
Examine your asset structure: It is important to review how your assets are structured on a regular basis (at least once a year) to make sure you are achieving a balance of flexibility of use and protection from creditors and excess taxes. If done effectively, asset structuring can provide tax advantages, family tax protection and the longevity of assets.
Use your tax return to your advantage: Every little bit of savings can put potential buyers closer to property ownership. Those looking to purchase property could consider contributing their tax refund into a high interest paying savings account or they could utilise the tax refund to reduce any existing debt. Having too much debt can make a difference when it comes time to apply for a home loan.
“It is important to remember that everyone’s situation is different, so consult with the experts to ensure your finances are on track to help you achieve your goals,” Mr Nation said.
If you want to learn more about your finance options, call call (02) 9833 8177 or visit www.mortgagechoice.com.au/Des.nation
For further information or to arrange an interview, please contact:
(02) 9833 8177
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice is a fully fledged financial services house, offering both mortgage broking and financial planning services.
Established in 1992, Mortgage Choice has sourced a home loan for well over 350,000 Australians from its extensive panel of leading lenders.
Today, many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and providing referrals for risk and general insurances.
In addition, to cater to the growing needs of our customers, Mortgage Choice has officially integrated financial planning into the business.
The company has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Recent recognition: 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited, a fully owned subsidiary of Mortgage Choice, holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.