Deduction Tips Help Boost your ATO Tax Refund
Here are a few tips to get creative with your tax return (and not break a law in the process!) You can always have a tax consultants to help you out with the tax chore,
1. List down all the deductions you can claim
These expenses include:
- Vehicle and travel expenses – including travel between work and home
- Clothing, laundry and dry-cleaning expenses
- Mobile phone, internet and home phone expense
- Overtime meals
- Self-education expenses
- Tools, equipment and other equipment
- Other work-related deductions
2. Don’t forget to Save Your Receipts
This is not only a waste of time but also a probable loss of hundreds or even thousands of dollars in a tax refund. So, grab folders, label them, and save every relevant receipt. Whether you work from home, invest in property or donate to a charity, keep the receipts and invoices safe in separate tax folders.
3. Make Charitable Donations and Lower your Tax Bill at the same time
A donation of $20 to a charity or $10 on a book might not seem like much at a time, but small purchases across 12 months can add up to hundreds of dollars. You can claim a deduction for anything over $2. Just be sure to save the receipt!
4. Prepay Your Bills
You claim a tax deduction this year for expenses which wholly or partly relate to next year, it will not only help you reclaim these expenses earlier, but you will also receive a higher refund in the current year.
5. Deposit Money in Super Fund
This is great for couples where one member is either not working or earns less than $40,000. The person can use super contributions to reduce the tax paid by the other partner.
The higher income partner can contribute up to $3000 to the non-working partner’s super fund and claim a tax offset of 18 per cent, which equates to $540. Anyone earning up to $52,000 can benefit if they put extra money into super.
For more tax tips call us or follow www.kpgtaxation.com.au
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