The financial year is drawing to a close, which means tax time is just around the corner! To help you get ready for the new financial year, we’ve compiled a comprehensive list of practical tips and advice for this period.
Whether you’re a business owner or an individual taxpayer, nobody wants to pay more tax than necessary.
While there are certain regulatory requirements and obligations that must be met by all businesses and income earners in Australia, there are also steps you can take to help legally minimise the amount of tax that you or your business are liable to pay.
Seeking expert tax planning advice from qualified and experienced tax accountants, and advisers, is the best way to ensure that you are taking advantage of every available opportunity for your specific circumstances.
Tax planning can be done at any point during the year, but with the end of financial year fast approaching, now is the ideal time to act. By seeking professional advice, you could potentially reduce your tax liability for the current financial year.
These tax tips and action points cater to everyone; whether you’re seeking advice for small business tax tips, investment tax tips or individual tax tips, keep reading to discover what you should consider before the tax year ends.
Of course, this is not an exhaustive list of all the possible ways to legally minimise your tax and prepare for the end of the financial year. Rather, it is a general compilation of the most common items to be considered.
Top 10 Tax Tips for Individuals and Families
- Claim Work-Related Deductions: Ensure you claim all eligible work-related expenses, such as uniforms, tools, and professional development costs. Keep receipts and documentation to support your claims.
- Review Investment Deductions: Claim deductions for expenses related to investment properties, including interest on loans, maintenance, and property management fees.
- Prepay Interest on Investment Loans: Prepaying interest on investment loans can bring forward a tax deduction, helping to reduce your taxable income for the current year.
- Maximise Super Contributions: Consider making additional voluntary contributions to your superannuation. This can reduce your taxable income while boosting your retirement savings.
- Take Advantage of Government Rebates: Be aware of any government rebates and offsets available to you, such as the low-income tax offset or the private health insurance rebate.
- Charitable Donations: Donations to registered charities are tax-deductible. Ensure you keep receipts for any donations made.
- Keep Track of Medical Expenses: Although the medical expenses tax offset is being phased out, certain medical expenses may still be deductible. Check if any of your expenses qualify.
- Review Your Private Health Insurance: Avoid the Medicare levy surcharge by maintaining an appropriate level of private health insurance cover.
- Income Splitting: If possible, consider income splitting with your spouse to take advantage of lower tax brackets. This can be done through various legal means, such as family trusts.
- Seek Professional Advice: Engaging a tax professional can help you navigate complex tax laws and ensure you are not missing out on any deductions or opportunities to reduce your tax liability.
By following these tips and seeking professional advice, you can ensure you are well-prepared for the end of the financial year and can take advantage of all available opportunities to minimise your tax liability.
If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.
This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.
