Helpful Tips and tricks to save tax
Easy things you can do right now to save tax.….
- If you drive your car for work purposes (excluding travel to and from work), keep a logbook (buy one from office works or see if there is an app that you can download). This keeps your options open, it gives the accountant the opportunity to choose the most effective way to claim motor expenses for you. Remember that driving to and from your usual place of work does not count.
- If you work overtime, or you get paid for some meals, ask your employer to pay these as a separate allowance instead of as part of your normal salary, ensuring that such payments show as an allowance on your Pay-As-You-Summary (aka Group Certificate). This gives us the option to claim your meals or generous amounts as set by the tax office against such payments.
- If one spouse earns more than the other, and one or even both are running a business, consider a Trust or at least a partnership structure. This allows the more even spread of income and avoiding taxes at higher rates as much as possible. Some restrictions apply to certain professions (such as accounting), but most businesses would qualify.
- If you have spare cash, consider negative gearing, but do it the smart way. It’s no good throwing money away only to get a percentage of it back as tax refund. Talk to a financial planner and to your accountant before diving in.
- Consider other forms of investments. Did you know that interest on a loan obtained for the purpose of purchasing shares, bonds etc are tax deductible?
- If your work provides optional uniform, consider obtaining and using one. An applicable portion of your laundry costs will all of sudden become tax deductible.
- ATO’s website is full of great information and is written in plain English. It’s a great resource and it is at your disposal.
- Keep your receipts! While this serves a proof of expense, this is a great way to ensure you remember to claim everything you are entitled!
- Group and add up your receipts! This will help reduce your accounting fees! This is for personal tax return clients. Business clients, consider hiring a competent bookkeeper who is a BAS Agent.
- Get a great accountant!