Save money at tax time

 makethemostofyourmoney

SLUG YOUR WAY TO SAVINGS THIS JULY!

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What can you do in the next in the next 6 weeks with your money? The answer is a lot! Here’s some great tips you can use to boost the bank balance, reduce your tax bill and give you some extra spending money for the rest of the year:


1. Put Some Money into Super

Anyone who’s earning up to $52,000 can benefit if they put some of their own money into super. For every $1 you put into super, the government will match it with 50 cents (up to a maximum of $500).

 

If your spouse isn’t working, or earns less than $40,000 (including fringe benefits and super) you can use super to reduce your own tax bill. The other partner can make a spousal contribution (up to $3,000) and save $540 in tax if you make the maximum.

 

Saving for your first home – The First Home Super Saver Scheme could be a great opportunity to put that little bit extra toward your deposit. It works where you salary sacrifice money into your super account and you can then withdraw up to a maximum of $30,000 (over 2 years). Find out more and calculate how much you could benefit, click here.



2. If you've made money from an investment

If you have sold shares or a property or other investments, you’ll have to pay tax on this. You can try and minimise this by selling any assets you have that are sitting in a ‘loss’ position.

 

These ‘capital losses’ can offset some of the ‘capital gain’ you have made on other investments and reduce the amount of tax you need to pay.


3. Pay your professional adviser fees in June

For some people, it’s convenient to pay their bills weekly or monthly. But if you can pay some of your bills in a lump sum (accountant, adviser, union fees or professional subscriptions) you can bring forward the expense and claim it as a deduction in this year’s tax return.


4. Consider Income Protection

Income protection insurance won’t only cover you for a freak accident when you can’t work. The other thing it does, is when paid with your own money is fully tax deductible. If you take out and pay for a policy before June 30th, you can claim the full amount at tax time and get it refunded when you put in your tax return.


5. Work from home?

If you have the opportunity to work from home, great! Flexibility is key and the other thing it allows you to do is claim some of those expenses at tax time. Make sure you tell your tax adviser if you have worked from home, as there might be potential to claim a portion of your Internet, phone, electricity and other expenses.


It doesn't sound like much, but these simple tips and tricks when added up can save you a few $1,000 in July. Spend a little bit in June to get more back in July. Whilst your looking at this, take the time to check your financial plan. It's about making the small decisions that have the big impact. Make smart decisions now, so you can have the future you want.


Thinking you want to take it one step further and take a whole review of your money? Our free trial can get you right on your way. Click here to see what else you can do!


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