If you’re on the hunt for a maximum return this tax time (and who’s not?), we’ve got you covered. Some deductions are quite easy to miss, so check out these 8 (legal) ways to boost your tax refund. And make sure you book your tax appointment… the sooner you get your claim submitted, the sooner you get your refund!
1. Gather your fee receipts
Bank fees charged on investment accounts or interest payments on funds borrowed to purchase investment assets are tax-deductible (remember to report the interest/dividends earned on these accounts as assessable income). Don’t forget that fees to your financial planner are also tax-deductible, provided the advice you received relates to income-producing assets. You can’t claim for the initial plan, but you can claim for ongoing advice relating to those assets.
Action: Print out a summary of all your various bank fees, charges and interest, including the fees paid to your financial planner.
2. Claim your insurance costs
Income protection premiums are completely tax-deductable as long they’re not paid within your Superannuation, and can provide a great boost to your refund.
Action: Request a summary from your insurer that itemises your income protection from your other forms of life insurance.
3. Claim your tax return fees
The amount you pay to your accountant to prepare your tax return each year is fully deductible, as is the cost of travelling to see your tax agent to have your tax prepared. Make sure you keep a record of the number of km’s you travel and any other incidental costs such as parking, meals, accommodation (if applicable).
Action: Dig up last year’s tax receipt, and calculate how much in total it cost you to have your tax return prepared.
4. Don’t forget those small work-related expenses
You can claim a deduction for business expenses you have incurred that haven’t been paid by your employer. This includes money spent buying and repairing equipment and supplies you use at work, including tools, electronic organisers, stationery, diary, work bag, tool belt or briefcase and mobile phones. You can claim up to $300 for these small expenses without a receipt, provided you keep a record with information that would normally be shown on a receipt (date, business name, item purchased, price). Find out more about claimable work expenses.
Action: Print out all invoices, receipts and expenses and pop them in a folder. Make a list of items you bought that you didn’t keep receipts for.
5. Are you an avid reader?
Every book (or similar) that was purchased for the purpose of helping you make money or invest can be deducted from your tax.
Action: Gather your receipts together… and keep reading!
6. Did you give it away?
Donations to registered charities are fully tax-deductible. While you’re gathering together receipts for donations you’ve made in the last year, it’s also the perfect time to donate to one of the many worthy causes in desperate need of funds to continue their critical work – you’ll make a huge difference to more than just your bottom line.
Action: Go through your email and files, dig out your donations receipts from the past year & print. Then pick a cause and make another donation!
7. Be prepared.
Use these Tax Tools to make sure you’re claiming every possible tax deduction you’re entitled to!
8. Protect yourself.
With more than 600 million pieces of third-party data used to track activity and income, the ATO is relentless. Neither the best Accountant in the world, nor a 100% accurate lodgement, is any guarantee against an Audit. And the costs of being properly represented during an audit can add up pretty quickly, when even a simple enquiry can sometimes require hours of work. Audit Shield provides a cost-effective solution to guard against these unbudgeted costs if a current or retrospective tax audit is sprung on you.
Action: Find out more about our Audit Shield service and call us on 9887 8751 to get yourself covered.
For tax advice and help lodging your tax return, simply email us, call us on 9887 8751 or book a meeting online today. And don’t forget that the fees you pay to get your tax return done are tax-deductible!