As we hurtle towards the end of the financial year, it’s essential to explore strategies that can help you maximise your tax savings. Here are some practical tips to reduce your personal tax bill effectively: 

Claim the Cost of Working from Home

If you work from home, you can claim 67 cents per hour using the shortcut method. Keep a detailed diary of your home working hours to ensure accurate claims. For home-based businesses or higher expenses, consider other methods that may allow for larger deductions. 

Deduct Job-Related Expenses

Unreimbursed job-related expenses, such as meals during overnight trips, can be claimed. Ensure you keep all receipts and consult the ATO’s industry-specific guides to understand what expenses are reasonable and allowable. 

Make Charitable Donations

If you’re anticipating a substantial tax bill due to gains, consider making larger donations to deductible gift recipient (DGR) charities before 30 June. Donations to DGRs can significantly reduce your taxable income. 

Boost Your Superannuation

Contributions you make to your superannuation from after-tax income can be deducted, up to $27,500 per annum, provided you haven’t reached your transfer balance cap. Don’t forget to lodge a notice of intent to claim with your super fund to make these contributions deductible. 

Deduct Self-Education Expenses

Expenses for courses that improve skills related to your current job can often be deducted. This includes course fees, textbooks, and other related costs. However, studies aimed at obtaining new employment or starting a new business are not deductible. The education must be relevant to your current income-earning activities. 

Manage Investment Expenses

Investment-related expenses, such as account fees, loan interest for income-generating investments, costs for investment seminars related to your current investments, and specialist journal subscriptions, are generally deductible. Initial investment plans and brokerage fees are typically not deductible. 

Prepay Deductible Expenses

Prepaying expenses such as loan interest, professional subscriptions, and other deductible costs can help you claim these deductions in the current financial year. This strategy can reduce your taxable income effectively. 

Consult a Professional

Given the complexity and unique nature of everyone’s financial situation, seeking professional advice is crucial. At Collective Financial Partners, our experienced accountants can provide tailored strategies to maximize your tax savings. 

We provide personalised advice to help you take full advantage of all available deductions and opportunities. 

 

Take control of your financial future by reaching out to us today on 02 4050 0900. Our dedicated accounting team is here to assist you with expert guidance and customized solutions, ensuring you make the most of the end of the financial year. 

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