How to maximise your tax return before June 30

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How to maximise your tax return before June 30

Australians can maximise their tax returns by taking advantage of new rules.
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Highlights

  • Weeks before June 30 are usually the last chance to settle your tax records and save up to the maximum.
  • Many new rules have been introduced, keeping in mind the work from home arrangement.
  • Individuals should prepare records in advance and prepare the list of deduction eligible expenses they have made.

With the end of the financial year inching closer, most Australians are looking at getting their fiscal affairs in order. For Aussies, weeks before June 30 signify the last chance to settle their tax records. There are some ways to complete the tax return process, even as the June 30 deadline appears to be approaching.

Last-minute planning requires swift decision making, and the help of helpful tips and tricks can help expedite the process. Also, individuals can maximise their tax returns by keeping some important pointers in mind.

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Without much ado, here are some of the important tips that can help Australians increase their tax returns weeks before the June 30 deadline.

Claiming work from home costs

The unique working setup that has emerged during the pandemic has mandated the need for fresh laws that incorporate home office expenses. Those working from home occasionally or throughout are eligible for some deductions on costs associated with working from home.

Image description: These home office expenses can be claimed in tax returns

Additionally, any purchases made during the current period can be deducted from this year’s tax return. The days preceding June 30 offer the lowest gap between purchase and tax deduction, making the factor of “time value of money” negligible.

Keeping all paperwork ready

It is important to maintain a record of all transactions that are crucial for the tax return process. This includes receipts and invoices of all work-related expenses. It is the perfect time to get all financial records in order and list out expenses that can be claimed.

To claim returns, it is important to have all the necessary documents in place. Some items can have both work-related and personal aspects, for instance, a work phone. To make a claim on such items, individuals would have to maintain a record showing how much is used for office and how much is used for work. Thus, instead of rushing at the last minute to segregate work expenses, individuals can start the process a few weeks in advance.

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Utilising the superannuation fund

Superannuation is perhaps the easiest way to reduce taxable income and obtain higher returns. Super holders can add money to their fund as a personal contribution, against which a personal tax deduction is applicable. Both self-employed individuals and employed individuals can claim a personal tax deduction.

Image description: Using super to save up on taxes

The concessional contributions also include the contributions made by the employer alongside the employee’s contributions. A lower tax rate on super contributions allows individuals to save up on tax payments through this method.

Paying attention to net capital gains balance

For those individuals who have made investments in the form of shares or any other method, it is crucial to offset the capital gains with the capital losses. Those assets which are expected to run into a loss can be removed from the portfolio to save up on net payments.

Also, the capital gains tax is applicable to all the returns made on investments. Thus, doing away with failed investments can help reduce the tax bill.

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Buying a handbag and keeping car kilometres in check

Other innovative ways of saving up on taxes include purchasing a handbag for work-related travel and maintaining robust records of work-related journeys. Briefcases, backpacks, or handbags are eligible items that can be bought to claim a tax deduction.

Similarly, kilometres spent on travelling to work can also be used to claim deductions. Thus, individuals should have a solid record of all work-related travelling. This year’s car claims are expected to be lesser due to lockdowns.

Other methods

Besides these measures, individuals can also do the following:

  1. Make donations to registered charities.
  2. Prepay some of the expenses for the next year, such as union fees, professional subscriptions and insurance premiums.
  3. Add extra contributions to a spouse’s super fund as contributions to a spouse’s super are eligible for a maximum tax offset of AU$540.

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With the end of the financial year inching closer, most Australians are looking at getting their fiscal affairs in order. For Aussies, weeks before June 30 signify the last chance to settle their tax records. There are some ways to complete the tax return process, even as the June 30 deadline appears to be approaching.

Last-minute planning requires swift decision making, and the help of helpful tips and tricks can help expedite the process. Also, individuals can maximise their tax returns by keeping some important pointers in mind.

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