Blog

May 22

Some Key Items that mean $ in your pocket

Posted by Peter Marmara-Stewart at Wednesday, May 22, 2019

You can reduce your tax by hundreds of dollars (if not thousands), with some of the following strategies.

Here's how to do it:

The Strategy behind Tax Planning

The tax you pay depends on your taxable income, and the tax rates that apply to that income.

Therefore, your tax is reduced if you:

1. Reduce your income, or

2. Increase your tax deductions.

Seeing we all want to earn more, reducing your income isn't an option! But increasing your tax deductions definitely is. We have shared below links to two Tax Planning Flyers, which both list a number of items that can be claimed as tax deductions. You can use them as a guide, but you should contact us if you are not sure of anything.

To illustrate: If you need something in July that is classified as a tax deduction, it makes sense to bring this purchase forward and buy it in June. You then get the tax deduction this year, and not next year.

Warning: Don't fall into the trap of buying something simply to get the tax deduction from it. If your tax rate (including Medicare Levy) is for example 34.5%, you would only get 34.5% of the purchase price back as a tax refund (or reduced tax payable) from the tax deductible item. You DON'T get 100% of the amount that you spend back as a tax refund (or reduced tax payable).

If you do need an item for your business or work and it is tax deductible, we recommend buying it BEFORE 30 June so that you get the tax deduction this year.

Your Tax Planning Strategy Checklists

Business Owners: Click Here for our ‘Tax Planning Flyer for Business Owners’.

Individuals: Click Here for our ‘Tax Planning Flyer for Individuals’.

If you are a business owner, we will look at both for you.

If you want to minimise your tax burden, then help us to help you, and get in contact with us today!

By spending a little bit of time with us reviewing your situation, we may be able to help you save thousands!!

Now is the time to do it - please contact our office TODAY to get started.