Top Tips for preparing for tax time?

Another financial year is done and dusted!

So, now’s the time to get your records in order, so you can be sure to get the maximum tax return possible.

To help you on your way, we've consulted with an expert Accountant to provide you with the following top tips for getting the maximum tax return.

1. Don’t leave it till the last minute to get organised. Gather all your receipts and develop a record of all tax deductible expenses well before the appointment with your Accountant. If you are claiming motor vehicle expenses, ensure that your vehicle log book is up-to-date and that you have receipts for all expenses, such as servicing, insurance, registration and tyres. 

2. Consider taking out private health insurance. If you earn $90,000 or more per annum, it may be worth purchasing private health insurance to avoid the Medicare surcharge levy of 1%. Note: if you earn over $105,000 per annum this levy increases to 1.25% and if you earn over $140,000 per annum it increases to 1.5%.

3. Give to your favourite cause. If there’s a charity close to your heart, consider making a donation prior to June 30, as this expense may then be tax deductible this year.

4. Prepay expenses. If there are any expenses you can bring forward and pay in advance, then do this before June 30 so that the expenses are claimable this year. A good example of this is to pre-pay for income protection insurance. If you have an investment property loan, you could also pre-pay the interest on this loan, but make sure it’s at a good rate. Our expert Mortgage Brokers at Mortgage Choice Surfers Paradise can assist you with this.

5. Defer income. If possible, hold off issuing invoices until after July 1. This may help you avoid paying tax this year.

6. Get repairs and maintenance done now. If you own an investment property, it’s beneficial to get any repairs or maintenance around the property actioned and paid for prior to June 30.

7. Washing expenses. If you wear a uniform to work, you can claim up to $150 per year for washing expenses without receipts.

8. Home office expenses. If you work from home in a dedicated office, you can claim 34 cents per hour, which may not seem like a lot, but for someone who works 20 hours per week, this quickly equates to $353.60 per year.

9. Technology expenses. Taking work calls, home internet usage and computer depreciation are all claimable so long as they’re work related expenses.

10. Get professional advice. The fee for engaging a professional Accountant to compile and lodge your tax return is 100% tax deductible. We can recommend a professional Accountant to help you get the maximum tax return.

 

 

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