9 Useful Ways to Boost Your Tax Return
Mistakes can be costly for individuals and businesses during tax season, which makes the need for professional help very important. According to the Australian Taxation Office (ATO), many commit mistakes during tax time, from claiming for personal expenses to forgetting to keep. Such blunders can have consequences on one’s tax return.
Boost your tax return with these tips:
The end of financial year is just around the corner but that doesn’t mean there isn’t time to take advantage of the many opportunities to help an individual realise their tax-saving potential.
1. Know which tax bracket you belong to
The ATO has a breakdown of tax brackets to help individuals identify which bracket they belong to and get a good idea of how much they will owe in tax payments.
2. Have good bookkeeping skills
Proper documentation of all financial transactions—like keeping receipts—is essential in identifying which items one can claim as tax-deductible. The ATO has encouraged taxpayers to keep their receipts to avoid overclaiming.
Working with a bookkeeper will make the process easier for individuals but for those who don’t using any of the many bookkeeping apps is an option.
3. Be on top of your tax deductibles
The ATO has identified major mistakes taxpayers make and one of them is failure to claim the right deductibles. Simply put, some are unable to enjoy tax savings because they either forget to claim for certain items or have absolutely no idea which items are tax deductible.
4. Donate to charities
Making contributions to charitable institutions is one effective way to reduce taxable income. These organisations must be registered with the Australian Charities and Not-for-profits Commission (ACNC) for donations to qualify as deductible gifts.
5. Supplement partner’s super
Individuals who contribute to their spouse’s super funds may be eligible for more tax savings as long as the partner is either unemployed or is a low-income earner (makes less than $13,800 p.a.).
6. Do some EOFY shopping
The end of financial year offers business owners the opportunity to add to their revenue-generating capabilities and enjoy tax savings at the same time. All purchases—items used for making profits like computers, mobile device, etc.—made during the financial year may yield tax savings.
7. Claim transportation-related costs
Car-related costs, like petrol, are tax deductible. Individuals who own cars that they use for work-related travel can claim only for the mileage used in work-related activities. This will not include the travel to and from work.
The ATO has a comprehensive guide on the scope of this deductible.
8. Spruce up your rental
Income from a rental property as well as costs of renovations are tax-deductible.
9. Claim as many as you can
Part of the reason why many don’t enjoy the tax-saving benefits during the EOFY is they simply forget. There are many expenses taxpayers forget to claim like electricity, printer ink, bags, mobile devices, even seminars.
Set up new goals
As the financial year winds down, it’s important for individuals to plan for the one about to come with the help of professionals to make transitioning to the next EOFY easier.
Want to know more?
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Below are some articles that may interest you:
- Government Stimulus Package for Business
- Government Stimulus Package for Individuals
- Australian Tax Office Relief
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IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.