A tax expert has recommended the three things you should do right now to potentially increase your tax return.
H&R Block’s director of tax communications, Mark Chapman, on Sunday urged Australians to take advantage of tipping before the end of the financial year.
Mr. Chapman said 7news The first thing you should do is embark on a shopping spree.
Since upcoming tax cuts will reduce the amount taxpayers will receive in exchange for deductible items next tax year, now is the time to shop big.
On average, taxpayers would see a return of 32.5 cents on the dollar this year, but that will drop to 30 cents next year.
The H&R Block Website state If you are employed and work from home, whether occasionally or all the time, you are entitled to claim deductions.
Items such as furniture, computers, and associated hardware and software that cost less than $300 can be paid for in full immediately.
Chapman also advised “paying in advance, for example, for a membership, subscription, or insurance policy.”
H&R Block Director of Tax Communications Mark Chapman gave three simple tips to potentially get more benefits from the taxman.
His second piece of advice was that Australians should complete their retirement.
Chapman said if you make a personal contribution to your retirement fund, you can claim it as a tax deduction.
The H&R Block Website state You can make additional contributions up to your concessional contribution limit and claim an income tax deduction for doing so.
The concessional contribution limit for 2024 is $27,500.
This will increase to $30,000 by 2025.
According to the ATO website: “If you claim a tax deduction for personal super contributions, they are concessional contributions and effectively come from your pre-tax income.”
“They pay taxes into the fund at a rate of 15 percent.”
Because upcoming tax cuts will reduce the amount taxpayers will receive from deductible items next financial year, now is the time to buy big money.
Chapman said the third and final piece of advice was to make a charitable donation.
Donations of more than $10 to a registered charity are tax deductible, but you must keep the receipt to claim them.
The ATO state the recipient must be a deductible gift recipient (DGR).
It is an organization or fund registered to receive tax-deductible gifts or donations.
Consult with the Australian Tax Office about what you can and cannot claim for taxes.
