Are you trying to maximise your tax returns? Many employees in Australia are also doing the same. Unfortunately, many are losing out on potential deductions simply because they are not aware of its existence.
Since not many of us are tax professionals, such a problem is quite prevalent. Fortunately, there is an easy fix to this. An excellent way to save money is to actually educate yourself on what deductions there are that can help maximise your tax returns.
With that being said, here are the tips to maximise your tax returns when tax time arrives:
1. Know your tax bracket
The first thing you must do to maximise your tax returns is to know which tax bracket you fall into. Tax brackets change from year to year, so reviewing the tax rates you fall into every year is useful. Combined with some tax planning strategies, you could minimise the amount of tax owing.
2. Keep track of your receipts
Many people put their receipts away in their drawers for access later. While this might work for some, a lot of people run into issues such as missing receipts and the like. For that reason, we highly recommend using apps to assist you. By digitising your receipts, you can access them at any time without worry that the ink will fade away or that you will lose the receipt.
3. Claim for car and home expenses
If you are working from home or using your car for business-related activities, you can actually claim for the expenses incurred by using them. For instance, travelling to work-related training or seeing a client. Such costs can be tracked using a mileage tracker application throughout the year, enabling you to claim the costs. For other costs like home expenses, this will work if you have an at-home office where you can claim equipment, utilities, and more by tracking your receipts and the number of hours you work from home.
4. Write off your work travel expenses
The keyword here is “work travel.” This means you can claim any travel you undergo for work-related purposes. For instance, you can deduct the overnight expense at a hotel to prepare for a meeting, and you may even claim for the plane ticket if you paid for it. So long as your employer is not reimbursing you for the expenses incurred, you can generally claim from them.
There are so many things you may be eligible to claim for. Unfortunately, it can get quite difficult to track what you can and cannot claim. For that reason, we highly recommend reaching out to tax specialists or even checking out with the ATO to see what deductions you qualify for. Whether it be business travel, educational courses, office supplies, and more, many of these things you can claim if you track them well, allowing you to maximise your tax deductions when tax time finally arrives.
Wardle Partners Accountant & Advisors are business accountants and tax experts offering services to satisfy tax, accounting, and other needs to get the best outcome for our clients. If you are looking for accountants on the Sunshine Coast to help you stay on top of your taxes, reach out to us today!