There are countless easy ways in which you can reduce your TAX. Take a look below where we’ve listed five simple ways that will help you this tax season.
1. Keep Good Records
Keeping good records is the top way to ensure you claim every expense you are entitled to and that your tax process runs smoothly. Ensure you are organised! Take 5 minutes each week to sort out your receipts and logbooks and we guarantee it will save a lot of pain and anguish at the end of financial year.
2. Be Charitable
Did you know that every donation over $2 you make to a registered charity is tax deductible? After you make any donation you should be given a receipt, allowing you to claim each donation as a tax deduction in that financial year. Just keep your receipts in a folder and at the end of financial year you’ll have many extra deductions which will help maximise your refund.
3. Claim what you are entitled to claim
Claiming deductions is one of the best tools in reducing your overall tax payable. If you have to spend money during the year and it relates to earning an income, then keep the receipt and make sure you claim a deduction for what you are entitled to. Even if you use the item for part work and part personal, you may still be able to claim an apportioned deduction. If you are unsure whether you can claim a particular item, keep the receipt and ask your Etax Accountant.
4. Seek the Advice of the Professionals
In most cases using a tax agent or accountant can not only save you a lot of time, but will also improve your tax refund or net payable. This is why the ATO’s statistics show 71% of Australians used a tax agent’s service – like Etax.com.au – in 2010!
At Etax we are experts, and we have up-to-date and in-depth knowledge of tax laws and changes. We may find you are entitled to deductions you were unaware of or even an offset you didn’t know existed. And the best part is; the cost of dealing with a tax agent or accountant can generally be claimed as a deduction the following year.
5. Medicare Levy Surcharge
If you do not hold a private insurance policy, as soon as your income exceeds $77 000 for singles or $154 000 for families, you will be required to pay an extra 1% on top of the 1.5% Medicare levy paid by most Australian taxpayers. Often the cost of taking out private health insurance will cost less than the 1% of your gross income you will be required to pay when completing your tax return.
Stay tuned for part 2 of our series coming before the end of August where we’ll continue with our other five ways to help reduce your tax.
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