Take a look at each of the key tax time areas for what might help reduce tax in your case.
Making extra contributions to your super could help you come out on top. Salary sacrificing contributions (asking your employer to do it on your behalf) to your super account could reduce your overall taxable income, as these contributions are taxed at 15% rather than your PAYG rate. This is particularly relevant for those approaching or over 55 and thinking about retirement. There is discussion that these rules may change in the future, so if you can take any action now before the benefits disappear you won’t be kicking yourself later on.
Particularly geared towards those with investments in property, just a few things to think about are: prepaying interest on your loan to claim further deductions; if you’re thinking of refinancing your mortgage do so by June 30 as the costs are tax deductible; and bringing forward any needed maintenance expenditure before June 30.
Don’t forget to give your Accountant a copy of your Medicare Annual Summary information and Private Health Fund summary, if applicable.
If you need to claim more than 5000 kilometres per year for using your personal car for work you will need to supply a log book detailing your usage. Details of each trip must include dates, odometer readings (start and end), total kilometres travelled and the purpose of the trip (eg visited client A at location X). If you haven’t kept a log book this year you can only claim 5000 as the maximum, so if you think you may have travelled further for work it is worthwhile starting a log book on 1 July.
If you have a term deposit maturing before June 30, you can arrange to have it delayed until afterwards so your taxable income is lower.
Get Your Paperwork Together
Fees, losses, bank statements, property management statements, receipts, dividend statements, etc. – get all this in order sooner so that you’re ready to pass this on to your Accountant as soon as possible. The sooner your tax can be lodged the sooner any returns can be given back to you. But don’t just look at this as a time to lodge paperwork – be proactive and ask your accountant the ways that you can minimise tax for next year.