How do you maximise your tax refund ?
As the end of the financial year approaches, many Australians begin to prepare their tax returns in hopes of receiving a refund. Maximising your tax refund can help you get the most out of your hard-earned money. Here are some tips on how Australian taxpayers can maximise their tax refund:
- Keep accurate records
We look after over 8,000 clients every year, and we find one of the best ways to maximise your tax refund is to simply keep accurate records of your income, expenses and any tax-related documents. This includes keeping receipts, bank statements, and invoices for any work-related expenses, such as uniforms, travel expenses, and equipment. It’s amzing how many clients don’t pay attention to this, especailly when it can save them so much every year and save your ass when the ATO audits you (it happens more than you think)
By keeping accurate records, you can claim all the deductions you’re entitled to, and you can avoid making mistakes on your tax return that could cost you money.
- Claim all the deductions you’re entitled to
To maximise your tax refund, you need to make sure you claim all the deductions you’re entitled to. Some common deductions that many Australians are eligible for include work-related expenses, self-education expenses, and charitable donations.
You can also claim deductions for any personal super contributions you make and any interest paid on investment loans. Make sure you speak to Accountants Direct – Individual Tax Return Specialists or to see what you’re eligible to claim.
- Keep up with changes to tax laws
Tax laws are constantly changing, and it’s important to keep up with these changes to maximise your tax refund. For example, in the 2021-22 financial year, the Australian government introduced several new tax changes, including a temporary tax offset for low- and middle-income earners and changes to the instant asset write-off threshold for businesses.
By staying informed about tax changes, you can take advantage of any new deductions or credits that are available to you.
- Consider salary sacrificing
Salary sacrificing is a way to reduce your taxable income by directing a portion of your pre-tax salary into a superannuation account or other benefits, such as a car lease or childcare. By doing so, you reduce your taxable income, which can result in a lower tax bill and a higher tax refund.
However, it’s important to remember that there are limits to how much you can salary sacrifice and that it may not be the best option for everyone. Speak to a financial advisor to determine if salary sacrificing is right for you.
- Lodge your tax return early
Finally, to maximise your tax refund, it’s important to lodge your tax return early. This is because the ATO processes tax returns on a first-come, first-served basis, and those who lodge early are more likely to receive their refund sooner. But sometimes too early (like July) can cause issues because all of you ta data may not be available on the tax portal. As such, we believe mid to late August is the bes time to lodge.
By keeping accurate records, claiming all the deductions you’re entitled to, keeping up with changes to tax laws, considering salary sacrificing, and lodging your tax return early, and seeking good adivce you can maximise your tax refund and get the most out of your hard-earned money.
And of course we are always here to help you to get the maximum tax refund at the lowest cost. Call us anytime on 1300 TAX SHOP.
Stephen is the CEO of Accountants Direct and is a Professional Director, ASIC Agent, Startup Advisor & Investor & Capital Raising Specialist.
Contact Stephen or his team if you have any questions about this post or any business matter in general.
