Mortgage Choice reveals its top tips for EOFY
With the Australian Taxation Office revealing it will speak to more than 350,000 taxpayers this year in a bid to crack down on dubious tax returns, it is now more important than ever to understand exactly what can and cannot be claimed.
Local Mortgage Choice broker Stephan Marohn said planning ahead can help taxpayers maximise their refund and ultimately end up with more money in their back pocket.
"Those who start thinking about their tax return before the end of the financial year often end up getting the most money back," Stephan said.
"Simple things like knowing your budget and whether or not you can afford to pay for certain expenses before 30 June, thus increasing what you can claim, can help taxpayer to grow their overall refund.
"With an increasing number of taxpayers submitting their tax returns online these days, it is important to know what you can do in order to maximise your refund. Those who don't know exactly what they are able to claim can end up short-changing themselves."
To help Australians prepare for tax time and maximise their refund, Mortgage Choice has created five steps that all taxpayers can follow:
Step1: Lodge Early
While you might be dreading going through the paper work and receipts for your tax return, the sooner you start the process, the better off you will be. Instead of allowing your tax refund to accrue interest in the Australian Tax Office's coffers, complete your tax return early and let your refund boost your bottom line. You can use your tax return to pay off your credit card (thus saving you from paying high interest charges) or put it into a high interest savings account.
Step 2: Get Private Health Insurance
Singles with a taxable income of $90,000 or more and no private health cover, will face a Medicare Levy Surcharge (MLS) - which can be quite costly. If you don't have private health cover and you currently earn $90,000 or more, taking out private health insurance now will help to decrease the surcharge you have to pay. Better yet, provided your health cover is continuous, you will be able to avoid paying any surcharge in the next financial year.
Step 3: Boost your Superannuation
Salary sacraficed super contributions are taxed at 15%, which is likely to be lower than your marginal tax rate. And, because any super contributions come out of your before-tax income, they are not counted as assessable income for taxation purposes. This is a simple way to save on tax and build your wealth, as more of your income is put towards growing your superannuation.
Step 4: Claim Against Your Investment Property
Many property investors don't realise they can claim for a range of expenses on their property, including but not limited to; Agent's fees, body corporate fees, advertising for tenants, building maintenance and repairs, cleaning costs, insurances, home loan fees, interest payments, council and water rates, the cost of travel to and from the property for inspections, and depreciation deductions for the property. Making sure every possible claimable expense is claimed at tax time can help you grow your overall refund. Of course, given that there are so many claimable expenses available to property investors it is worth speaking to a professional to make sure nothing is missed.
Step 5: Take Out Income Protection
Income protection insurance is a claimable tax deduction. So if you already have a policy and can afford to pay your premiums for the next 12 months in advance, doing so before July will mean you are able to claim the cost as a tax deduction for the 2014/2015 financial year. It is important to note however, that income protection insurance is not deductable if funded through your superannuation.
If you would like to learn more about your home loan or financial advice options, call 02 4322 3818 or visit www.mortgagechoice.com.au/stephan.marohn
For further information, photos of the new logo, or to arrange an interview, please contact:
Mortgage Choice Gosford
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: 2014 Australian Broking Awards Best Diversification Program; 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.