Getting ready for 30 June Jun 19, 2020
It’s hard to believe, but tax time is very nearly here! We have a few tips to help you maximise your tax incentives before the end of the financial year (and help you to boost your super balance post-COVID-19).
Get organised now
Collect your receipts and start gathering all your details together now. The sooner you’re organised, the quicker you can get your tax sorted post 30 June. Just remember that if you are thinking of submitting your tax return shortly after the end of financial year, your information may not have been pre-populated in yet. Much of your pre-filled information won’t be available until later in the year – some even as late as August or September. So be sure to check all your information carefully if you do submit your return early!
Pre-pay for expenses
If you make any purchases for work that you legally can claim on your tax return, think about what you might need next financial year that you could pay for now. Items such as a new uniform or work boots may be claimable on this year’s tax return. That way you’ll be more likely to remember to keep your receipts and be able to claim any deduction you’re entitled to – and you could be looking at a better tax return come June! Remember to seek advice from an accountant if you’re unsure what you can claim.
Top up your super
Did you know you could receive up to $500 in extra super money when you make an after-tax contribution to super? The Government co-contribution is available to anyone earning below $53,564 (though the full $500 is only available to those who earn less than $38,564). If you’re eligible, for every dollar you contribute to super, the Government could match your contribution by up to 50 cents. You’ll receive the extra money in your super once you submit your tax return. Find out more here.
Tax reduction options
Salary sacrificing part of your income into your super account may be available to you as an option to reduce the amount of tax you pay. You can organise these contributions with your employer. If you have just moved into the next tax bracket, salary sacrificing could be a useful way to bring your income below the threshold and help reduce your tax. We recommend that you seek professional advice on the most effective strategy for you. In addition, if you or your partner earns less than $40,000, a tax offset could be available through the spouse contribution tax offset. Read more about this strategy here.
The information in this blog is general information only and should not be taken as constituting professional advice.
You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.