Tax Strategies to Maximise Your Tax Refund

As an experienced tax agent in Melbourne with over 20 years in the industry, one 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.

1. Take Advantage of the Instant Asset Write-Off 

If you’re self-employed or run a small business, the Instant Asset Write-Off can reduce your taxable income. For businesses with an annual turnover under $10 million, this measure allows you to immediately deduct the full cost of eligible assets costing less than $20,000 — instead of depreciating them over several years. Conditions and eligibility requirement apply.

2. Motor Vehicle Deductions 

If you use the log-book method, ensure your logbook is current and that you have all the receipts, invoices and records of journeys which you will need to calculate and substantiate your claim. 

If you use the cents per kilometre method, ensure you keep a record of all work-related journeys during the year.

3. Mobile Phone Expenses

If you used your personal mobile phone for work purposes, you must apportion for private use and claim deductions for business-related usage. Make sure your phone bills reflect business and personal use over a four-week period. That percentage can then be applied to the whole year. 

It’s important to remember, you can’t claim a separate deduction for mobile phones if you have claimed the 70 cent/hour fixed rate for working from home.

4. Home Office Expenses 

If you work from home, you can claim for this expenditure under either the Actual Method or Fixed Rate Method. Retain your records and maintain a log of your working patterns to substantiate your deductions. As tax consultants, we will assist in making an assessment as to the optimal method to claim the deduction for you.

5. Make a Tax-Deductible Super Contribution 

Personal contributions into your super fund can be a sizable deduction with an enduring benefit. As long as the total amount of your contributions (including employer contributions) does not exceed $30,000. You must advise your fund if you intend to claim and do so at least 1 week prior to 30 June.

6. Prepay Work-Related Expenses 

Prepayments of eligible work-related expenses, wholly or in part are an effective way to increase deductions, but only if you have spare cash. Deductions related to professional subscriptions, union fees, and annual insurance premiums should be considered. Please note these are only a sample of potential deductions.

Not sure which prepayments you can claim? Call ArrowHead Tax Accountants to find out which prepayments you can claim this financial year.

7. Keep Written Evidence 

Ensure you have supporting documents like invoices, bank or credit card statements, logbooks for motor vehicles and receipts for everything you intend to claim.

For expert tax advice and help maximising your refund, contact ArrowHead Tax Accountants today.