With the end of the financial year fast approaching, many individuals and businesses are looking for ways to reduce their tax liability. If you’re looking to pay less tax this financial year, here is a checklist of things you can do:
Review Your Deductions
Make sure you’ve claimed all the deductions you’re entitled to, such as work-related expenses, charitable donations, and investment expenses. Keep receipts and records of your expenses to support your claims.
Contribute to Superannuation
Consider making extra contributions to your superannuation account. This can help reduce your taxable income and provide long-term savings for your retirement.
If you’re a small business owner, consider prepaying some of your expenses, such as rent, interest, and insurance. This can help reduce your tax liability for the current financial year.
Time Your Income
If you have control over the timing of your income, consider delaying income until after the end of the financial year. This can help reduce your taxable income for the current financial year.
Take Advantage of Tax Offsets
Make sure you’re taking advantage of any tax offsets you’re entitled to, such as the Low and Middle Income Tax Offset (LMITO) and the Senior Australians and Pensioners Tax Offset (SAPTO).
Seek Professional Advice
Consider seeking advice from a tax professional or financial planner. They can help you identify strategies to reduce your tax liability and maximise your savings.
By following this checklist, you can potentially reduce your tax liability for the current financial year. However, it’s important to ensure that any actions you take are legal and compliant with tax laws. Be sure to keep accurate records and seek professional advice if you’re unsure about any tax-related matters.
In conclusion, paying less tax this financial year requires careful planning and consideration. Review your deductions, contribute to superannuation, prepay expenses, time your income, take advantage of tax offsets, and seek professional advice. By taking these steps, you can potentially reduce your tax liability and maximise your savings.