Optimising your tax return

With tax season here, taking proactive steps can ensure you maximise your tax return, whether you’re an individual taxpayer or managing taxes for a business. Here are some strategic tips to consider:

Organise Your Documentation Start by gathering all necessary documents, such as:

• PAYG summaries
• Receipts for work-related expenses
• Investment statements
• Records of charitable donations

Organising your paperwork early helps ensure you can claim all eligible deductions and credits.

Claim All Eligible Deductions You can claim deductions for a variety of expenses, including:

• Work-related expenses
• Self-education expenses
• Charitable donations
• Income protection insurance premiums

Keep detailed records and receipts to substantiate your claims.

Optimise Superannuation Contributions Contributing to superannuation can offer significant tax benefits. Consider:

• Making concessional contributions (subject to contribution limits)
• Using a Notice of Intent to Claim form to notify your Superannuation Fund and obtain confirmation before filing your tax return

Salary sacrificing into your super fund can reduce your taxable income, lowering your tax liability.

Take Advantage of Tax Offsets and Credits Tax offsets directly reduce the amount of tax payable. Common offsets include:

• Seniors and Pensioners Tax Offset (SAPTO)
• Small Business Income Tax Offset (SBITO)

Research which offsets you qualify for and ensure they are correctly claimed.

Stay Informed About Tax Law Changes Tax laws can change annually. Stay updated with changes announced in the Federal Budget or seek advice from a tax professional to leverage all available opportunities. For instance, the Stage 3 tax cuts effective from 1 July 2024, while not affecting last year’s tax liability, may offer planning opportunities for the future.

Plan Ahead for Next Year Use this tax season to plan for the future. Consider strategies such as:

• Contributing to your spouse’s super fund to qualify for the spouse contributions tax offset
• Adjusting your salary sacrifice arrangements for the next financial year

Take Action Today! Tax time doesn’t have to be daunting. By staying informed, organising your documentation, optimising deductions, and considering superannuation strategies, you can navigate tax season with confidence and potentially increase your returns. Seeking professional tax return advice and timely lodgement are crucial for a successful tax filing process.

Book a complimentary initial consultation with our Financial Planner who can offer you professional, independent advice based on your unique set of circumstances.

Source: www.fiducian.com.au

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