Tax deduction tips to follow now if you want a richer refund
Maximise Your Tax Refund: Essential Tips for the End of Financial Year
As tax season approaches, individuals seeking the highest possible refund have just over two weeks to take action. There are numerous personal deductions available that could potentially return thousands of dollars from the Australian Taxation Office.
Supercharge Your Tax Refund with Superannuation
Members of superannuation funds have unique deductions that can significantly enhance their tax refunds, sometimes by tens of thousands of dollars. Chartered accountant and Mr Taxman founder Adrian Raftery emphasizes that the next two weeks are crucial for timing tax deductions, as tax rates drop for everyone starting July 1.
“You will get more bang for your buck in this year’s tax return if you bring forward deductions,” Dr. Raftery advises.
Coco Hou, managing partner at Platinum Accounting Australia, highlights late June as the "last chance to check and claim all eligible deductions and rebates specific to Australian tax laws, such as work-related expenses, charitable donations, and superannuation contributions." Beyond Bank's chief customer officer Nick May encourages getting organized now, even if it means going through receipts stored in a shoebox.
Top 10 Tips to Boost Your 2024 Tax Refund
Free ATO Guides: Workers seeking bigger deductions should explore the occupation and industry-specific guides on ato.gov.au. These guides cover around 40 sectors, providing valuable insights into deductions you might not know you can claim.
Be Work-Wise: Consider your work-related expenses this financial year, including laundry costs for work uniforms, technology spending, and travel for meetings. Remember to keep records of these expenses and note that you cannot claim expenses already reimbursed by your employer.
Donate for Deductions: Donations to legitimate charities are tax-deductible. June is an excellent time to contribute to your favorite cause, as these donations will be tax-deductible.
Prepay Expenses: Prepay deductible expenses such as professional subscriptions and investment loan interest before June 30 to bring forward tax deductions. Other work-related expenses like union fees, travel bookings, conference costs, and education expenses can also be prepaid.
Drive Bigger Car Claims: If you use your car for work-related travel, maintain a logbook for at least 12 weeks to claim substantial deductions. Keep all costs associated with running your car for the entire year.
Super Savings: Significant tax deductions are available for those who contribute extra to their superannuation. Utilize your annual cap for tax-deductible super contributions to save more on taxes.
Catch-Up Contributions: Take advantage of the ability to make extra concessional contributions if you have unused space in previous years’ caps. This is especially beneficial for those with super balances below $500,000.
Working from Home: Tax deductions for working from home have changed. You can now claim a deduction based on hours worked at 67c per hour, which includes phone, internet, and stationery expenses. Alternatively, use the 'actual cost' method for potentially higher deductions.
Insurance Claim: Consider paying income protection insurance premiums outside your super fund upfront, as these are tax-deductible.
Get Help: A good tax agent or accountant can help you maximize deductions and delay lodgement until May. Their fees are also tax-deductible.
Personal Deductions and Tax Cuts: A Double Win
Laura Edmunds, part-owner of the cafe-restaurant Hello Neighbour, focuses on personal tax deductions despite her busy schedule running a business. She looks forward to the July 1 stage three tax cuts, which will provide an extra $177 each month for workers on an average wage.
Personal tax deductions for superannuation, donations, and some insurances are strategies Edmunds considers to bring money back to consumers or invest in future savings. However, she notes that June is not ideal for making significant business decisions due to the financial rush.
With these tips, you can effectively boost your 2024 tax refund and make the most of the deductions available to you. Now is the time to get organized and ensure you claim everything you're entitled to.
