Boost your 2018 tax refund
With the end of the financial year just around the corner, now is the time to look at ways of legitimately boosting your tax deductions – to make sure you get the maximum tax return!
Simple rules
The ATO has outlined some simple rules for getting your work-related expenses claim correctly.
Adhering to below, can ensure you do not cross legal boundaries.
-
You must have incurred the expense in the year you are claiming for
-
The expense must be work-related and not private
-
Receiving an allowance from your employer does not automatically entitle you to a deduction
-
If your claims total more than $300 you need written evidence (there are exceptions)
What you should do
Keeping above in mind, below is a list of few things you can do with the limited time available till the closure of tax year.
-
If you’re an employee, consider bringing forward spending on items related to your work:
Say you are an IT geek, who is thinking of purchasing that new soft ware in three months time. Provided that is below $ 300* and work related, if you can bring this expense forward to the current financial year, you will be able to use this as a deduction now!
*capital items up to $ 300 can be fully deducted in the same financial year it is purchased
-
If your partner or spouse is a low income earner, an easy way to save on tax is by making a contribution to his or her super fund. It could see you eligible for a tax offset worth up to $540.
-
The tax breaks on super for self-employed workers are worth a look too. If you run your own show you can claim a tax deduction for up to 25,000 annually regardless of age, from 1 July 2017.
-
For small business owners, there’s still time to invest in additional business equipment. You will be able to claim an instant tax write-off on the purchase of new or secondhand equipment costing up to $20,000.
-
In more generic terms, now is the time to search for all invoices you should have kept to substantiate tax deductions. Collection of small bits and pieces of expenses can lead you to a handsome tax deduction!
All in all, speaking with a tax consultant is a smart way to be sure you toe the tax man’s line.
