Since it is that time of the year again when everyone dreads to pay tax and is looking for ways to save some, there are a lot investment options that you can choose from for this purpose. There are various ways to save dollars while filing your tax return. Take a look at them below:
-
Maintain your tax records
There are many things you might have spent on which attract some tax reduction claim. Make sure to keep these documents properly so as to show it to ATO when needed. You can download these receipts on your system and also keep a hardcopy of the same. Since you cannot remember everything hence keeping a good record will help.
-
Donating to charity
Did you know that if you donate to charity you get a tax deduction? So it’s a win-win as you are doing a good work and your tax also gets saved. Make sure to take the receipt of the donation made and keep it properly to claim deduction.
-
Claim expenses
Say if you are an employee at an organisation, then if you claim expenses related to travelling for job these are tax deductible. There are various expenses which when claimed can help in reducing tax. Make note of these.
-
Seek advice from tax agents
There are many professionals working in this field who have in-depth knowledge about what all can be done when it comes to tax calculation. It is best to take advice from them as this also eliminates chances for mistakes. Any mistakes made can lead to ATO asking for an audit or re-assessment of tax.
-
Investments
There are various investment options available in the market that you can make use of. In case of investments it is best to check first that they are genuine and allowed by ATO for a tax deduction. You may want to approach an investment/financial planner for advice.
-
Be careful about capital gains tax
Whenever you sell an asset, the appreciation in its value from the time you first owned it is charged. This rate depends highly upon the holding period of the asset in question. Hence before selling an asset make sure to do these calculations as well.
Other common ways to save tax is through medical expenses as well. You may also want to reduce your savings if in case you are an avid saver. Paying off your mortgage if you have surplus money can help.
