While putting in the extra effort with your tax return can feel like a bit of a chore, the results can make it worth it. Consider getting a tax consultant from Bramelle Partners on your side to reap the most benefits.
This article shares some handy tips for making the most of your tax return in North Sydney.
Have all your personal information at hand
Ensuring that you have all relevant personal information ready to provide to your tax agent or the ATO can help speed up the process and avoid missing out on tax deductions you might have otherwise missed. Things to provide include:
- Tax file number
- Bank account details
- Details of all income and expenses (including Centrelink benefits and/or debts)
- Investments, businesses and shares
- Medicare card or number
- Private health insurance details
- Charity donation records
- Spouse and dependents details, if applicable.
Be smart with tax deductions
Tax deductions are the easiest and most straightforward way to boost to your tax refund, so make sure to claim all the deductions that you are eligible for. Some work-related expenses include:
- Laundry and uniform expenses
- Travel expenses (e.g. petrol or public transport fares)
- Internet and phone expenses
- Self-education expenses
- Donations and gifts
- Union fees
- Equipment and tool expenses
- Meal expenses.
Keep your receipts together
Save yourself the hassle of having to scavenge for old receipts by keeping them organised and labelled in a folder. This means whenever you make a purchase – whether it’s for office supplies, bills, property investment payments or charity donations – you should be placing it in your folder. If you are unsure whether a purchase is tax deductible, save it anyway – your tax consultant can give you advice later on.
Contribute to your super fund
Did you know that making super contributions can reduce the amount of tax you pay each year? You may be able to claim tax offsets which can save you hundreds. Low-income earners (earning up to $52,000 annually) are currently eligible to receive a 50 cent super contribution from the government for every extra $1 contribution they make.
Make lump sum bill payments
While paying your bills on a weekly or monthly basis may be convenient, paying your bills off in lump sum amounts can have financial benefits in the long run – you can claim a tax deduction for expenses which relate to the following year. This also allows you to claim your expenses earlier.
Reassess health insurance
Price hikes and changes to covered health insurance services as of April 1 2018 means that you should review what services you are covered for and decide whether it’s still worth being covered or if you should switch insurers. You can claim private health insurance as a tax offset, so make it worth it!
Sell assets which are sitting at a loss
You are required to pay tax for any earnings you’ve made from investments and shares. To minimise the amount of tax you pay on your assets, sell off those which are sitting at a loss. However, avoid selling shares and then repurchasing them in the following tax year, as the ATO will cancel any tax benefits you have made and may also issue you a penalty.
There are many things you can do to get the most out of your tax return. Ensure that you lodge your tax return before the deadline and give yourself plenty of time in advance if you plan on using a tax agent to assist you.