As an experienced tax agent in Melbourne with over 20 years in the industry, one question I question I often get asked by my clients is:
“What can I do next year to maximise my tax refund?”
Fortunately, the answer isn’t as complicated as you may think. With a bit of forward planning and a few smart, last-minute strategies, it’s entirely possible to improve your outcome at tax time.
To maximise your tax refund for the year 2024, consider the following strategies: Ensure you claim all applicable deductions. Common ones include: work related expenses, donations, home office expenses, education expenses and income protection expenses.
As taxpayers we must always ensure that we have receipts to support our deductions and moreover, retain these for five years in the event of a review. This requirement is applicable to all taxpayers.
Generally, as a rule, if you are regarded as an employee, you will be deemed to be a salary and wage earner. As a result, the expenses you incurred which give rise to tax deductions associated with earning your income must have a direct link to your income producing activities. The expenses cannot be incidental or incurred as a matter of convenience.
When running a home-based business in Australia, you can maximise your tax deductions by understanding the specific expenses you can claim. Let’s explore how you can optimise your deductions:
According to data sourced from the Australian Taxation Office rental income and deduction will always be closely monitored since 2.2 million Australians hold and investment property and claim over $50 billion in deductions each year. (ATO Year Ending 30 June 2019.)
As of 1 July 2022, the rate of superannuation payable to employees is 10.5% an increase from 10 %. Employee superannuation will progressively increase to the Government’s policy of 12 % from 1 July 2025. The next increase to 11 % is required on the 1 July 2023.