Investing Ideas

7 Tax-Saving Tips You Can’t Ignore

If you are here reading this, I am sure you are a taxpayer individual in Australia, just like I am.

Well, there’s one thing common among all of us: we all hate paying taxes (for obvious reasons). But a certain amount needs to be paid because it is our duty towards our country. But the amount necessarily need not be the exact percentage of what the government asks from your income. If you are doing your taxes right, and in the most efficient way possible, you will be saving a lot of money, and reap a lot of benefits from avoiding tax and not evading it.

Remember that tax evasion is illegal, not tax avoidance.

About Tax, you must remember one thing, the laws, rules, and regulations differ widely from government to government and from country to country. What might be legal in one country, can be illegal in another.

On that note, let’s discuss some of the super-efficient tips that will help you save your taxes in Australia.

  1. Tax Deductions

One of the easiest ways to get higher refunds on your taxes is by claiming tax deductions. You can claim a deduction for every work expense that you haven’t been reimbursed by your employer.

These include amounts like travel to work, daily expenses, clothing, laundry and dry-cleaning expenses, overtime meals, mobile-related expenses, and other work-related deductions.

  1. Save every relevant receipt

Savings aren’t just about money but about time as well. Most of us sometimes spend hours collecting every receipt while filing tax returns. This not only leads to a loss of time but also a probable loss of hundreds or even thousands of dollars in a tax refund.

So, instead, start collecting all your receipts, label them and carefully compile them in a folder.

  1. Do Charity

I am not saying you to do charity for personal gain but my point here is that making charitable donations has its own benefits. One such benefit is helping you claim a deduction. Anything over $2 is claimable. So, lend a helping hand to a good cause and alongside, it will also help you reduce your tax bills.

  1. Pay in a lump sum

So many people globally pay bills monthly or weekly. There can be various reasons to do that, primarily the agreed-upon conditions of the receiver party. But, when it comes to tax deductions and refunds, paying bills like union fees and professional subscriptions is always better.

Claiming a deduction for an expense that is wholly or partly related to the next year will help you reclaim expenses and will also help you receive a higher refund, in the present year.

  1. Make use of Super Fund

Superfund, if used the right way, can be really beneficial, especially for couples. In a couple where one member is not working or earns less than $40,000, can have the other partner contribute up to $3000 to the non-working partner’s super fund and claim a tax offset of 18%, equaling $540.  After 12 months, it becomes well above $6000.

  1. Sell loss-incurring shares

Earning from investments and shares also means you have to pay a tax on them. so, to minimize the tax amount, getting rid of such assets that are currently at a loss, helps. The capital loss offsets against the capital gain.

But this cannot be done if you are planning to buy the same shares the following year, as the ATO has issued a tax ruling, canceling any tax benefits, and even applying appropriate penalties.

  1. Hire the best

You aren’t a tax expert, neither am I. And I know for a fact that you aren’t planning to do your taxes alone especially if you have a business. So, look for the best in the business and place your bets after significant research.

If the accountant is ideal, he will take care of everything and also maximize your tax return. IF you are looking for Accountant Geelong and don’t know where to begin from, you can explore the services offered by CannyGroup – they are one of the best in the business.

Over to you…

Filing taxes can be really hard on you sometimes, and plus, no one likes to give away their hard-earned money, but it is what it is. However, by investing in the right people and doing things the most efficient way, you can make the most out of your tax returns.

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