As Chartered Accountants, we often meet new clients that bring with them stories of uncertainty when it comes to tax time. How do I maximise my 2024 tax return? Are there new rules I need to know about? What am I entitled to?
Theses questions have answers. And because we are Chartered Accountants, we have them.
When we turn the key at our accounting offices in Mornington, flicking the light switch with a coffee in hand, we set out our day to make sure our clients know their numbers, where they stand, and how they can benefit from having expert tax accounting advice available to them as a Tier Accounting client. In person and virtually.
Our goal at Tax Time? To maximise tax returns for both individuals and complex business structures.
There is no doubt that Tax legislation is a complicated subject. So when planning finances, it is important to have tax experts on hand who understand the rules set by the ATO, how these apply to you, and importantly, be provided with clear communication of what you need to do. Because we know, tax returns can be a tricky endeavour.
This blog post is aimed at providing you with a few strategic yet general tips to help you plan your taxes better.
While it doesn't replace the nuanced advice you will receive from us in person or online when you book an appointment as a dedicated tax professional, these guidelines should give you a solid start in your tax planning journey.
Know Your Deductions: One of the first steps to maximising your tax return is to understand what you can claim as a tax deduction. Expenses related to your work, such as uniforms, protective clothing, and certain tools, can be deductible. If you work from home, you may be able to claim a portion of your home office expenses. Keep in mind, these expenses must be directly related to earning your income.
Keep Detailed Records: The Australian Tax Office (ATO) requires you to keep records for five years. Make it a habit to save all receipts and records of expenses that could be potential deductions. There are many excellent smartphone apps that can help you do this, which will make things easier when it's time to file your return.
Invest in Income-Producing Assets: Certain types of investments, like rental properties or dividend-yielding stocks, can provide you with deductions while also generating income. For example, expenses related to a rental property—such as interest on loans, maintenance, and depreciation—could be tax-deductible.
Salary Sacrificing: If it suits your financial situation, consider salary sacrificing into superannuation. This is a legal way to minimise your tax bill as contributions are taxed at a concessional rate. Plus, it's an excellent strategy for retirement planning.
Use Professional Services: Professional accountants and tax agents are skilled at identifying deductions you may have missed and can ensure your tax return is filed correctly. Our fees are also tax-deductible, making this an investment that could save you money in the long run.
Stay Informed: Tax laws are complex and change frequently. Stay abreast of tax law changes, ATO updates, and financial news that could impact your tax situation. Becoming a Tier Accounting clients helps you stay informed.
Remember, these tips are general in nature and may not apply to everyone's individual financial circumstances. It's always a good idea to book in an appointment with a chartered accountant and tax expert who understands your financial situation and can provide tailored advice.
Planning your taxes isn't just about maximising this year's return. It's about setting up a strategic approach to manage your financial affairs efficiently over the long term.
As always, we're here to help.
If you're on the Mornington Peninsula, you can book an in person appointment. Or if you are located elsewhere in Australia, don't hesitate to book a virtual appointment to start maximising your tax return in 2024.