Last Minute Things You Can Do To Minimise Your Tax

Last Minute Things You Can Do To Minimise Your Tax

The end of the tax year is quite busy for most individuals and businesses as they are mostly consumed in preparing tax reports, collecting transaction records, and lodging taxes. If you want to minimise the tax you pay and maximise your returns, you need to follow some tricks that professional tax accountants are well versed with. In this blog, we’ll explain you several easy tips you can try to pay less tax. Some of the lesser known ones include:

Super – Try making extra concessional super contributions by moving extra funds into super, thereby paying only 15% tax. This tip applies if you haven’t hit the maximum concessional contribution limit of $25,000.

Defer Income – To end up saving more money and limiting the transactions that can count towards tax, you can consider holding off, completing or invoicing some jobs until July.

Capital Gains Tax – If you’ve made a capital gain this year, you can consider selling some loss performing investments to reduce that capital gain. A capital gains tax is only accountable if it happens on the contract date, rather than the settlement date.

Donations – In case, you make donations to NGOs or charitable organisations, consider making tax deductible donations to registered charities.

Stock – Is your business dealing with stocks? If yes, make sure you prepare a stock take on every 30 June so that you can end up finding any lost, damaged or obsolete stock that can be written off.

Bad Debts – Review your accounts payable and write off any debts that are simply not going to be paid and are not worth pursuing.

Fringe Benefits Tax – Whether you work for someone else or operate your own business, there’s a good possibility you might save on taxes by salary sacrificing things like cars through your job in the current financial year.

Of all the above given recommendations to maximise your tax returns, you may or may not apply all of them. Please feel free to contact one of our tax accountants to discuss before taking any of these recommendations to find out if they are available, justified, or allowable in your case.

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