It’s almost the end of the tax year, so you might think it’s too late to get your taxes sorted out, but there are still some last-minute ways to get the most out of your tax return. So, we have helped you with 10 tax tips that you can take away to maximise your tax refund.
10 Tax Tips that you can use to maximise your tax refund:
Gather your records Take some time to gather all the information you will need to file your taxes. This includes invoices and receipts for work-related expenses, as well as any bank or credit card statements that show work-related expenses for which you no longer have (or never had) receipts or invoices.
Even if you’re not sure if you can claim it, get the ticket or bill together and talk to your tax agent about it.
You can’t get a credit if you don’t have the paperwork, so it makes sense to set aside this time before the end of the financial year so you don’t have to stress out looking for paperwork while you’re working on your return!
Also, if you’re claiming costs that have both a work-related and a personal aspect, like using your own cell phone for work, set aside some time to figure out how to fairly divide up the work-related part.
Equip your home office Many stores are having sales at the end of the financial year, so if you buy something now, you can take it from your taxes this year. This way, you can minimise the time between buying something and deducting it from your taxes.
Use the work-related portion of real costs or the ATO’s fixed rate of 67 cents per hour to make your claim. For this method to work, you need to keep track of your work-from-home hours for the whole year on timesheets, rosters, or a diary.
For people who have jobs but work from home sometimes or all the time, you can deduct the costs that come up because you work from home. You can claim the following costs:
Heating, cooling and lighting
Cleaning costs
Decline in value (depreciation) of home office furniture and fittings, office equipment and computers (for items over $300)
Computer consumables, stationery, telephone and internet costs
Items of capital equipment (such as furniture, computers and associated hardware and software) which cost less than $300 can be written off in full immediately
Update your log book If you use the log-book method, now is the time to make sure that it is up-to-date and that you have all the papers, bills, and trip records that you will need to support and figure out your claim.
If you use the cents per kilometre method, you will still need to keep track of all the trips you take for work during the year.
This year, the ATO will be paying extra attention to car claims because they think that too many people are making claims for trips they didn’t actually take.
Keep a mobile phone log As long as you used your personal cell phone for work, you can recover the cost of that use.
Make sure you have all of your phone bills in one place and that you’ve kept track of how you’ve used your phone for work and pleasure over the last four weeks. After that, that number can be used for the whole year.
Remember that you can’t claim for cell phones if you’ve already claimed 67 cents per hour for working from home costs. That rate includes a component that recognises cell phone use, so making a separate claim is “double dipping,” which the ATO is very aware of!
Donate to charity Give to charity at the last minute. If you give more than $2 to a listed charity and have a receipt, you can deduct that amount from your taxes.
Prepay some expenses You can get a tax break this year for costs that have something to do with next year.
So, if you have extra money, you might want to pay things like Income protection premiums, professional memberships, and other yearly insurance payments early to get the deduction sooner.
Buy a new handbag You can get a tax break for the cost of a bag you use for work, like to carry papers or a laptop. That could be a suitcase, a backpack, or a handbag, depending on what you need.
Make a tax-deductible super contribution If you have some extra money, you might want to put it into your super fund.
This can be a great way to save more for retirement and get a tax break for the personal contribution, as long as the total amount of your contributions, including the contributions your employer makes on your account, does not go over $27,500 or your carry forward cap depending on your previous contributions.
You need to make the payment by June 30, and you need to let your super fund know that you’ve done so by the time you file your tax return. Your super fund or lawyer can help you fill out the form, and the ATO website has a standard form.
Offset capital gains against capital losses When you sell shares or any other type of investment and know you made a capital gain, you might want to look at your investment account and think about selling any assets you know are sitting at a loss.
The capital loses that happen can be used to potentially cancel out capital gains.
But be careful if you sell shares that are down in value and then buy them back in the next tax year. “Wash sales” are something the ATO doesn’t like at all.
This means that an asset is sold before the end of the year and a nearly similar asset is bought right after the end of the year.
The ATO sees the buy and sale as basically the same thing, and they’ve put out a Tax Ruling that says they can use the anti-avoidance provisions to take away any tax breaks and impose penalties.
Seek expert help Seek advice from a tax expert or authorised financial planner. They know exactly what you need to do to get ready for tax season 2024 and get the most out of your exemptions while assessing your marginal tax rate and investment holdings.
If you would like to further discuss the article regarding tax tips for yourself or require tax planning services, please reach out to our office on 02 9188 1547 or email admin@rpwealthmanagent.com.au and you will get through to our Oran Park or Norwest/ Baulkham Hills location, alternatively you can fill out the contact form and an Adviser from our office will contact you.
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The information in this website and the links has been prepared for general information purposes only by our office and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax, personal or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor or tax professional to consider whether it is suitable and appropriate for you and your personal needs and circumstances.
Principal Financial Planner at RP Wealth Management | Financial Planning l SMSF I Insurance l Property Advisory. Our purpose is to provide our clients with sound advice and direction to assist with their financial affairs and help them make the best choices in achieving what is important to them.
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