There are a number of things you can do to maximise your tax deductions but you'll need to act quickly.
Registered tax agent Belinda Raso shares four things to do now to maximise your tax return. (Source: TikTok/Getty)
With the end of the financial year fast approaching, now is the time to maximise your tax return and potentially save yourself hundreds of dollars. But you'll need to act before the June 30 deadline.
This year will be a bit different to previous ones because of the Stage 3 tax cuts, which will kick in from July 1. Aussies tax rates will be going down, which also means you'll get a smaller refund for the same deductions if you make them next financial year.
Tax Invest Accounting director and registered tax agent Belinda Raso explained to Yahoo Finance how you can take advantage of this and the other things you can do now to boost your return.
1. Make your purchases now
Consider purchasing any expenses before June 30 while you still have a higher tax rate, rather than later in the year when the new tax rates kick in. This could be work expenses like work tools, home office supplies, uniforms and subscriptions.
Our tax rates are going down, which means our tax deductions are going to be worth less, Raso explained.
This isn't about buying anything additional, it's just about the timing of the purchase. So if you buy before June 30, that same purchase will be worth more to you as a refund than it would after July 1.
While the tax difference may only be a couple of per cent, Raso said when you add up every item you need to purchase, it could work out to hundreds of dollars in savings just by buying earlier.
2. Get your car logbook in order
If you use a motor vehicle for work, you'll need to get your records in order so you can maximise your deductions.
Now is the time to get that logbook going. If you're travelling over 5,000 kilometres without a valid logbook, you're going to be limited to 5,000 kilometres only, Raso said.
But if you have a valid logbook, you can claim all your motor vehicle deductions. A valid logbook goes for 12 weeks and just covers the usage of the vehicle.
A valid logbook is then valid for five years but you still need to keep track of everything you've purchased over the past four months.
If you are claiming the set rate method instead, Raso said you still need to keep track of where you have gone and why because the ATO will look closely at this as well.
3. Check your WFH hours
Work from home expenses are on the ATO's hit list this year and Raso said Aussies needed to make sure they had a logbook of all their work from home hours since July 1.
If you're claiming the fixed rate method of 67 cents per hour, you must have a logbook for every hour that you've worked, Raso told Yahoo Finance.
It can be your timesheets, your rosters, a spreadsheet, it can even be in a diary. But you must deduct all of your personal leave, your annual leave, any public holidays and any time that you weren't working from home.
If you just go and do 38 hours by 48 weeks, [the ATO] will look at that and say, 'That's not correct'.
4. Top up your superannuation
Another way to boost your tax return is by making a personal contribution to your superannuation fund.
You can make a personal contribution up to $27,500. That superannuation contribution includes what your employer has paid as part of the superannuation guarantee and any of your salary sacrifice, Raso said.
But if you haven't reached that limit, you can make a personal contribution to super and that will give you a great deduction.
Raso recommends making a contribution by at least June 24 to make sure it goes into your account in time. You'll also need to complete a 'notice of intent to claim' form and give this to your super fund.
https://au.finance.yahoo.com/news/tax-checklist-4-tips-to-boost-your-tax-return-before-june-30-035203683.html
