PERSONAL TAX RETURNS

When it comes to your Personal Tax Liability, Hills Accounting is the Tax Accountant Hobart turns to for the best advice. Recently, when we were asked a question on what steps during the year an individual can take to minimise their Tax Liability, we sat down and put together this general article on the subject to try to help everybody out.

The question was "What can I do to help minimise my Tax Liability during the year"? The person asking the question, working hard as a nurse, went on to say that she wanted to know what she needed to do during the year to help her situation, rather than missing out because she did not have the relevant information to hand for her Tax Accountant, come June 30th.

Now, obviously, every person is different, so these tips are general in nature and in order to get the perfect solution to suit you, you should talk to your accountant on a on-to-one basis so they can give you the best advice.

That said, here, for your, enjoyment, are 10 tips for a timely tax triumph!

Prepay Expenses

If you have deductible expenses like investment property costs, income protection insurance or professional subscriptions, paying them before the end of the tax year can bring the full years benefit into the current tax year.

Charitable Donations

If you make donations to charities make them before the June 30 can provide you with a current year tax deduction. But make sure you keep all the receipts for these donations.

Maximise Superannuation Contributions

Consider if it is possible through the year for you to make voluntary additional contributions to your superannuation fund. But keep in mind that there are caps on how much you can contribute during a financial year so make sure not to cross those limits.

Investment Portfolio

If you are in a possession to have your own investment portfolio, you should assess it to see if you have any unrealised capital losses that could be used to offset capital gains made elsewhere in the portfolio. Of course if you do not have a portfolio, but would like to find out more about how you could get one, the team at Hills Accounting are always available to talk to you and offer personalised advice.

In addition if you have traded shares or cryptocurrency you need to include that in the information you give to your tax accountant.

Private Health Insurance

You may be subject to the Medicare Levy Surcharge if you do not have private health insurance and your income is above a certain threshold. Taking our private health cover can avoid this.

Work-Related Deductions

Keep records and receipts for all work-related expenses like uniforms, home office expenses, professional development, or work-related travel expenses. Please note it is essential for these records to be kept for a minimum of 5 years.

Income Deferral

If you are likely to receive additional income for things like annual bonuses or investment income, defer it, if possible, until after the end of the financial year.

Government Rebates and Benefits

Check your eligibility for government rebates and benefits, such as the low and middle-income tax offset or family benefits. unfortunately, the Low & Middle Income Tax Offset was removed from 1st July 2022. But you never know when those in power may reintroduce it, or something similar. One of the advantages of working with Hills Accounting is that we keep track of all these changes as they happen.

Debt Repayment Strategies

Consider prepaying interest on investment loans or restructuring your debts to maximise tax efficiency.

Seek Professional Advice

Tax Laws can be complex and vary depending on individual circumstances. It is always advisable to consult with a tax professional to tailor a tax-minimisation strategy to suit your specific situation.

In closing, remember that tax planning strategies should align with your overall financial goals and comply with Australian tax laws. At Hills Accounting we are pleased to provide advice on goal setting and planning for the future. At all times, it's important to keep accurate records and receipts for all transactions and claims.

For more information, email us today at admin@hillsaccounting.com.au or call us on 03 62737800