With the end of financial year just around the corner, now is the time to start preparing your tax plan. Here is a list of the best ways to legally minimise your tax this financial year. If you earn more than $18,200 (tax free threshold), during the 2013 – 2014 financial year, you are required to submit an individual tax return to the ATO.
How to minimise your Tax Obligations:
The first thing to do is to start collecting all of your paperwork such as receipts. Many people miss out on valuable reductions because the receipt cannot be found at the last moment. Preparing your paperwork in advance makes it easier when claiming deductions on your tax returns.
Minimise tax by salary sacrificing your superannuation. Arrange with your employer to sacrifice a certain amount of your pay (before tax), and contribute it to your super. This reduces your taxable income, meaning that you pay less tax, and have more in your super for when you retire.
Motor Vehicle Expenses
If you use our car for work, you can claim some expenses as a tax deduction. This does not include getting to and from work, it refers to any time in which you are required to travel to anywhere other than your usual location. This includes things such as seminars, courses, meetings etc.
There are 4 methods used for calculating motor vehicle tax deductions, the most popular being the log book method.
Using a qualified accountant or tax agent is extremely important when submitting your tax return each financial year. Here at The Quinn Group, our tax accountants can add value to your situation and legally maximise tax deductions. Tax advice is also tax deductible.
Speak to our experienced team of tax accountants today to find out more! Submit an online enquiry, or give us a call on 1300 784 667.