You can boost your tax savings by following these simple, actionable tips.
This article is published by Modoras Accounting (QLD) Pty Ltd V11022019
6 Tax-saving Tips that Can Be Used Right Now
The end of financial year is a crucial time for individuals and businesses to get their tax returns in shape. This is also a good time to do a quick rundown of the many opportunities for tax-saving so one can avoid the stress that comes with this super busy period.
1. Save copies of receipts
Having proper documentation—such as keeping receipts—is essential in surviving the end of financial year and, more importantly, making it easier to claim tax deductions especially since the ATO has implemented stricter measures to avoid fraudulent tax claims.
Working with a bookkeeper or accountant is an excellent way to avoid stress during this period and ensure that all transactions are properly documented and stored.
2. Donate to charity
Making charity donations are another way to qualify for tax deductions and reduce taxable income at the same time. The charities will have to be registered with the Australian Charities and Not-for-profits Commission (ACNC) for donations to qualify as deductible gifts.
3. Organise deductions
Individuals and businesses are entitled to many tax deductions and to make sure you’re getting the most out of these opportunities to save on tax, one has to practice diligence—which mean keeping an organised list of the deductions you’re eligible to.
4. Contribute to spouse’s super
Individuals with spouses who are unemployed or earn less than $40,000 per annum can make after-tax contributions and qualify for a tax offset by as much as $450.
5. EOFY spending
Business owners can take advantage of the end of financial year by getting tax savings on purchases made during the financial year. These must be work-related items such as computers, storage devices, or even hiring new staff.
6. Tax deductions on car-related costs
The Australian Taxation Office (ATO) says car-related costs are the most commonly claimed tax deduction. Individuals who use a vehicle—car, motorcycles, or vans—for work can claim for the direct cost of performing their duties. This includes travelling to conferences and meetings, carrying tools and equipment, or going to an alternative workplace and not the travel to and from work.
As we set our sights on the new financial year, let’s make sure to plan ahead and plan properly. Our financial advisers can help you craft a sound strategy for a seamless transition to the next EOFY. Talk to our business advisors today on 1300 888 803.
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.
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