Are you looking to maximise your tax refund? Perhaps you’re just looking to pay less tax on your annual tax return? Whatever your reasoning, we’re here to show you how to legally and compliantly reduce your tax payments. Learn five simple steps that will help you claim the right deductions and pay the exact tax you owe.
5 Steps for Maximising Your Tax Refund
Here are the five key points to consider that will help you legally pay less tax:
- Keep Track of Work-Related Expenses
Work-related expenses can pile up throughout the financial year. Make sure you keep a record of spending, such as transport to and from work, the tools and equipment you require for your job (such as smartwatches in some cases), and any uniforms you purchase.
- Organise Your Records and Receipts
It’s vital to organise your documents and expense receipts as you go so that you don’t misplace or damage any important records. This will also make it a lot easier and quicker to file your tax return, as you’ll have everything neatly arranged in one place.
- Make Prepayments
Tax planning ideas like prepaying certain expenses before the financial year is out can ease the financial burden of your tax return by spreading the payments over several months. For instance, prepaying your insurance premiums or making additional contributions to your superannuation can make filing your tax return a lot more straightforward.
- Check for Tax Offsets and Rebates
To truly minimise your tax return, check for potential tax offsets and rebates you may be eligible for. These can provide huge financial relief when it comes to filing your taxes, yet many people remain unaware of the various schemes and rebates available to them. The ATO reported that there was $16 billion of unclaimed super in 2013.
- Seek Professional Assistance
Filing your own tax return can be complicated, especially if you’ve never done it before. But even people who have been filing their own taxes for years still miss rebates and tax relief they’re entitled to. That’s why you should always seek professional accountants and financial advisors to help you identify eligible rebates and reduce your tax payments.
Deductions for Home Workers
If you work from home, there are some extra expenses you can claim as tax deductions. The big one is utility bills; you can claim the heating, lighting, and cooling of the room in your house that you use for work. You can also make deductions related to the depreciation in value of home office furniture and fittings.
Minimise Your Tax Return with Advisory One
At Advisory One, we provide boutique accounting and taxation services to take away all your worries about filing your tax returns. Contact our team today or call us on 02 6324 5888 to discover how we can help you maximise your tax refund and pay less taxes.
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