The end of the financial year is fast approaching and many people are scrambling to reduce their tax bill this year.
Here are five last minute tips on how you can do it for some tax time relief.
1. Pay interest in advance.
Bring forward next year’s interest cost from your mortgage or investment loan and claim a tax deduction for those costs this financial year.
2. Claim tax deductions for charity donations
Any donations to a registered charity of $2 or more are instantly tax deductible. So if you are thinking of donating to a charity, bring it forward and you can claim the tax this year. However, you cannot claim for a charity donation that provides you with a benefit like a raffle ticket or cover the cost of attending a fundraising dinner.
3. Make a concessional super contribution.
The concessional (pre-tax) super contribution caps are dropping on July 1, in the new financial year. So if you want to make a pre-tax contribution, this may be a better year to do so. You can put up to $30,000 pre-tax and $35,000 if you are over 50 years of age before June 30. Next year, everyone will be limited to $25,000.
4. Bring forward maintenance work on your investment property.
If you have maintenance work that needs to be carried out in your investment unit, consider which tax year you want to spend it in. If you have a bigger income this year and are therefore in a higher tax bracket, get that last minute maintenance work done now so that you can claim the tax deductions.
5. Claim tax deductions for work expenses.
If you spend a significant time working from home, you can claim tax deductions for a variety of expenses. This includes work-related newspapers and magazines, mobile phones, broadband and other utilities.
Any courses to improve your skills may also be tax deductible provided the self-improvement courses are directly related to your job.