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It is fast coming up that time of year again! There are many items and or situations that are tax deductible that you may not know about. These can save you precious pennies come tax time! Here are just a few tips we thought we would share with you all on saving the most you can come tax season.

Tax Paperwork1. PREPAYING EXPENSES
Determine if you have any ongoing expenses that you can pay in advance. For example if you have any insurances that are tax deductible e.g. Income Protection or Health Insurance. If you are on a monthly payment plan you could pay the annual balance before June 30th and claim a deduction for this final year.

 

Tax Diary2. CAR LOG BOOK
Always keep your car log book up to date. If you are using your car for work related purposes then you must keep a record of all the kilometers travelled. If you keep a detailed log book with all work related kilometres recorded you have the ability to claim the highest deduction.

 

Tax Folders3. HAVE A GOOD FILING SYSTEM
This can be hard copy or digital. We always recommend taking either a scanned copy or even a photo on your smartphone of all receipts as these tend to fade over time. You need to record all tax deductible receipts and invoices as the Australian Tax Office will not allow a deduction without a copy of the receipt. This is not the case for items under $100 but it is always good to have these on file in case they are asked to be produced. Make sure your files are well labelled, easy to find and ready to go to the accountant.

Happy retirement tax4. SALARY SACRIFICE SUPERANNUATION
In 2016 the concessional tax deductible super threshold for individuals under 48 years of age (on 30th June 2016) increased from $25,000 to $30,000 and for those aged 49 and over (on 30th June 2016) the threshold is now $35,000. Take advantage of these increases to save on tax AND boost your retirement savings at the same time. You also need to be mindful of your concessional cap when considering any salary sacrifice strategy for the 2016/2017 year. Your employer’s contributions count towards the cap so make sure you do not exceed it.

Tax Donation5. DONATIONS
Do you make a regular donation to a cause or a charity? Donations of $2 or more are tax deductible if the charity is a registered Charity Organisation and as long as you don’t receive a benefit for the donation like a raffle ticket or voucher book. Always ask for a receipt of your donation.

 

tax6. ACCOUNTANT EXPENSES
You can claim travel expenses to see your accountant to prepare your tax return. Keep track of your kilometers and any other costs such as parking, meals or accommodation to claim on your next return.

 

golf tax7. MEMBERSHIP FEES
Union fees, Association fees, Membership Fees and Subscriptions to trade journals, books and industry associated magazines are all tax deductible if they are related to your employment. For example you can claim on the Plumbers Union fees or a Nurse’s annual registration.

 

phone tax8. MOBILE PHONES / INTERNET
Do you use your personal phone or internet for work related purposes? You can claim on this too. Keep a log book for one month of any work related calls and time spent on the internet for work. You can then claim the relevant portion as a tax deduction.

 

tax income protection9. INCOME PROTECTION INSURANCE
If you have a current income protection policy that covers your normal wage in case of injury or illness that prevents you from earning your normal wage – this policy is also a tax deduction.

 

tax10. UNIFORMS / LAUNDRY
If you have to purchase and wear a specific uniform in your workplace the costs of this are tax deductable, also the dry cleaning / laundering of this uniform is also tax deductable.

 

And there are hundreds more ways to get prepared for tax time! For a more extensive list of tax saving tips please contact us at info@bluewaveproperty.com.au