Smart tax tips for EOFY

It’s Tax Time and for some it may be a daunting time. Here we’ve got the tips that will help you make the most out of your tax refund.

The first and foremost thing that you need to know when it comes to claiming your tax is what expenses you can claim. It may be a mess going through the stacks of receipts,  however if time does not permit you to sort through your receipts then keep in mind that you can claim up to $300 worth of work related expenses. Anything that exceeds this amount then a receipt is required. Visit ato.gov.au and see the examples of work-related expenses related to your occupation. You can also claim up to $10 worth of cash donations before requiring a receipt for every donation claim.

If you have difficulty in scrambling through your records, consider thinking about new ways you can manage your records. Storing your paperwork electronically is a great way to ensure your records well tracked.

Always gather your payment summaries, which you receive from your employer, statements from your financial institution displaying interest earned during the year, shareholder dividend statements, summaries from managed investment funds and tenant/rental records of an investment property.

Most taxpayers pay a Medicare levy of 1.5% on their taxable income each year. In addition you may be required to pay an additional Medicare levy surcharge (usually around 1% of your annual taxable income) if you or any of your dependents did not have an appropriate level of private patient hospital cover for the whole income year and your income was above a certain amount. Families can avoid the Medicare levy surcharge by taking out private health cover; however they must hold the insurance for the entire year.

The Government will automatically make a deposit into your super fund for those who meet the income requirements after you lodge in your tax return. You have to be a low or middle-income earner and make personal (after tax) super contributions to receive a maximum amount of $500 in 2014- 15 to boost your retirement savings.  Visit moneysmart.gov.au to check your eligibility for co-contribution to your super fund. Another important tip is to ensure that you have provided your tax file number to your super fund to avoid paying too much tax.

Tip 5: Think ahead

If your income is high and there are not many deductions, it might be worth it if you delay any further income from rolling until the next financial year if possible. Another great tip is dividing your investments to your lower earning spouse or adult children to reduce the taxable income.

For more information and copies of your statements please contact us or visit www.ato.gov.au/individuals