With just over a week until June 30, here are some tips that can help savvy individuals make the most out of their tax refund for the 2014-15 year. The following tips are by no means exhaustive and may not be relevant to every personal situation.
- Keep your receipts
The most important thing every individual taxpayer needs to know when it comes to claiming their tax is what expenses they can claim. For most individuals, finding and organising receipts at tax time can be challenging and time-consuming. But, some of this stress can be avoided if they are mindful that they can claim up to $300 of work-related expenses without receipts. Even though there is no written evidence, taxpayers must be able to show how they worked out their claims.
- Claim your work uniform
People who are required to wear a uniform for work may be able to claim clothes or laundry expenses.
- Bring forward deductible expenses
Individuals who are earning less next year due to maternity leave or working part-time may be better off bringing forward any tax-deductible payments into this financial year. Rental property investors may also find it beneficial bringing forward any property maintenance costs, as they can be claimed in full or in part.
- Hit contribution caps
Self-employed individuals who are younger than 50 and haven’t exceeded the before-tax contribution cap of $30,000, or $35,000 if they are aged 50 or older, can make a personal deductible contribution.
- Delay any income
Investors who are selling a property should consider deferring the sale until after 30 June 2015 to delay incurring CGT for another financial year. Although it will need to be paid eventually, freeing up short-term cash flow may be handy.
- Claim vehicle expenses
Individuals who use their car for a work purpose beyond travelling to and from their workplace can deduct the cost if they have a log book.