End Of Financial Year
This time of year can be stressful, here’s a few helpful hints to save you money this EOFY!
Pay some extra on your super!
If you have some spare cash (check your back pockets), look at making a personal contribution into your super fund. Given the total amount of your self contributions (including the contributions made on your behalf by your employer) does NOT exceed $25,000, this can be a great way to boost your retirement savings and claim a tax deduction for the personal contribution.
The payment has to be made by June 30th and you will need to advise your nominated super fund that you have made the payment by the time you lodge your return (your super fund or accountant can give you guidance on how to complete the form and there’s a standard form on the ATO website.
What tax deductions you can claim?
Be sure to do your homework and know exactly what tax deductions you can claim. You may be able to claim deductions if your business:
If you are a sole trader, look at using the ATO’s mydeductions app to record your expenses during the year.
- has set up a website
- has motor vehicle expenses
- uses diesel fuel
- operates at home
- has travel expenses
- uses machinery, tools or computers.
Make a last minute donation!
If you’re going to hand over your hard-earned cash to anyone, wouldn’t you rather it be a worthwhile charity than the ATO? “Any donation over $2 can be claimed provided you have substantiation – such as a receipt – and the donation is to a Deductible Gift Recipient (DGR). Most major charities are DGRs but if you’re not sure you can check via the ATO’s ABN lookup,” says Mark. However be warned: “You can’t claim for donations that give you some form of benefit, such as raffle tickets or tickets to charitable dinners or other events.” Damn, always a catch. FYI – KEEP YOUR RECEIPTS!
Include Medicare levy and private health!
Remember, if you qualify for a reduction in the Medicare Levy Surcharge you need to put that information on your tax return, otherwise you will be charged the full amount. If you don’t have private hospital insurance and your income is more than $90,000 for singles or more than $180,000 for families, you will pay a minimum of 1% Medicare Levy Surcharge. That’s on top of the compulsory 2.0% Medicare levy paid by most taxpayers.
Get set for next year!
Put aside (in your calendar, today!) just 5-10 minutes each week to download statements, update your logbooks and put all your receipts into a folder. (Or, photograph them using the Etax mobile app and save them straight into your Etax account). It will save a lot of time at the end of financial year AND you pay less tax!
You have until 31 October to lodge your tax return.