The financial year is now nearing its end and your tax return will be due soon. For most income earners it’s that time of the year again to settle their taxes. A busy time of the year; finding legal ways to minimise the money that’s going to the tax man. There are many ways to cut the Australian Taxation Office’s take. Ways that includes your contribution on superannuation and taking advantage of every deduction you are eligible for. Whatever the case, the following are some tips in helping you get ready and look forward to your tax return.
Your Tax Return Your Way
The easiest way of legally maximise your tax return is through your contribution to superannuation. You can use your year-end bonus to settle your super. Of course if you’re sacrificing your bonus, you should set it up before your entitlement is confirmed with your boss. However, you need to keep in mind that the salary sacrificing is only related to your future income.
You must also know your potential tax deductions. Tax deduction encompasses many things and can be found on your tax form. A good example would be those interest cost of loans over investment properties. It can be used to reduce your tax return. You also have to make sure you claim all legitimate work-related deductions, so keep those receipts in a safe place. Doing so can save you from tax payment for up to a hundred dollars. The government is helping you manage your tax, so use the opportunity, look for your receipts and have them on hand for tax return time.
Make sure you keep track of all your assets and claim any potential tax deductions. For example you have some assets of loss-incurring investments, such as shares or an investment property, be wise enough to leave those commitments and sell it in order to reduce your capital gains tax.
For people who are into small businesses, don’t worry you will also have the privileges of tax deductibles that is specified just for you. The government’s budget of 2015 entitles small businesses to receive tax deductions of up to $20,000 for purchasing assets. This entitlement is available for businesses that have turnovers of less than $2 million starting from budget night in Mid May until July 2017. So if you’re a small time entrepreneur use the extra money to improve your business.
Of course all of this falls to the deadline of submission. Always send it on time. You don’t want any trouble or mistakes with your tax returns because they can be somewhat of a hassle at times.