Maximizing Your Tax Savings: Effective Strategies for the End of the Financial Year
As we approach the end of the financial year on June 30, I wanted to take this opportunity to help you manage your taxes more effectively.
There have been some changes in the laws for example this year “Low- and middle-income tax offset” has been taken away adding up 625 to 1500 in tax payable for the tax payers depending on the income. I believe implementing certain strategies can help you save on taxes. Let’s explore them together!
Employment-Related Expenses
If you have any work-related expenses coming up, it’s a good idea to take care of them before June 30. This includes things like uniforms, professional development courses, subscriptions, work-related travel expenses, and even home office expenses if you work from home. By bringing forward these expenses, you can reduce your taxable income.
Superannuation Contributions
Contributing to your superannuation fund can provide significant tax benefits. You have two options: salary sacrificing and personal deductible contributions. This year, the limit is AUD 27,500 per person. Additionally, you may be eligible for a tax offset if you make contributions on behalf of your spouse. To ensure your contributions are counted for this financial year, please make sure they reach your super fund by June 27.
Investment Deductions
You can take advantage of certain investment deductions by prepaying accounting or financial advice fees. Additionally, if you have an investment property, consider prepaying interest before June 30 to claim deductions. It’s important to discuss this strategy with us to determine if they align with your specific situation.
If a property needs any maintenance do before 30th June to claim deductions. Also make sure to get the Depreciation Schedule prepared so that you claim the correct deductions.
Deductions are also available for costs associated with managing shares or other investments, such as brokerage fees or investment advice fees.
Charitable Donations
Supporting registered charities not only benefits others but can also provide tax benefits through deductible gift recipient (DGR) status. Donations of $2 or more are generally tax-deductible, so keep track of your contributions and claim them in your tax return.
Education Expenses
If you’re pursuing further education to enhance your skills related to your current employment, you may be eligible for education-related deductions. This includes course fees, textbooks, stationary, and travel expenses directly related to your studies. Paying these costs before June 30 will allow you to claim deductions for this financial year.
It is important to remember that everyone’s financial situation is unique, and these suggestions may not apply to everyone. I encourage you to consult with a tax professional or financial advisor who can provide personalized advice based on your circumstances. By being proactive and taking advantage of available deductions, you can optimize your tax position and potentially save money. Should you have any questions or require further assistance, please don’t hesitate to reach out.
Here’s to a successful financial year-end!