As we approach the end of the financial year, it is time to prepare and submit your tax returns.
On today’s The Briefing episode, co-host Jan Fran talked to her sister, a tax specialist, Helen Francis, to find the best tax hacks to maximise the return you receive.
Francis says making voluntary contributions to Superannuation can significantly reduce the tax bill.
If you put in some additional money into Superannuation before the end of the financial year, you get to claim that amount as a tax deduction in your tax return,”
Francis said.
Francis has given an example of people who earn $80,000 a year; the marginal tax rate is 34.5 per cent, which means that if they put two grand into their Super before the end of the financial year, they can claim that two grand in the tax return as an expense.
On that amount, you’ll receive 34.5 per cent refunded to you from the tax office, which is the equivalent of almost $700,”
she said.
Francis says small business owners are reminded to take advantage of the instant asset write-off scheme.
Under this initiative, business owners can claim the full cost of any assets purchased for their business against their profits.
If you’ve purchased a car, and it’s 100 per cent work-related, then you can deduct the cost of that car immediately against your business profits. That is very different to what applies to salaried employees and individuals,”
she added.
According to the Australian Taxation Office, small businesses with an aggregated turnover of less than $10 million can immediately deduct the full cost of eligible assets costing less than $20,000 that is first used or installed ready for use between 1 July 2023 and 30 June 2024.
The $20,000 threshold will apply on a per-asset basis, so small businesses can instantly write off multiple assets.
Subscribe to The Briefing, Australia’s fastest-growing news podcast on Listnr today. The Briefing serves up the latest news headlines and a deep dive into a topic affecting you. All in under 20 minutes.