How to Pay Less Tax
Having a problem with your tax? Here are some ways that can help you pay less tax.
Keep Good Tax Records
You need to have receipts for all tax deduction claims so you can show them to the ATO if they request them. Keeping track of those receipts is the law, but it is also the best way for you to remember everything that you can claim, later on.
A lot of people miss deductions they could have claimed, every year. Do you? Keeping good records is the best way to make sure you claim every expense you are entitled to (and help ensure your tax process runs smoothly). So make sure you are organised—it’s easy!
Donating to charity is always a good thing but what makes it even better is that the amount you donate is claimable on your tax return. Now that is definitely a win, win! After you make a donation, you should receive a receipt. Make sure you keep it. At tax time, enter the total amount into the charity donations section of your tax return.
Claim everything you are entitled to claim
Even if you purchase an item partly for work and partly for personal use, you can still claim an apportioned deduction of the cost. Also, if you have to spend money on anything that relates to earning your income, make sure you claim a deduction for the cost.
If you are not sure whether you can claim a particular item, keep the receipt and ask us in the ‘Any other questions?’ section when you enter your next tax return. Remember, it is always better to keep a receipt and not be able to claim it, than to throw it out and find out you could have!
Consult Tax Professionals
In most cases, using a tax agent or accountant won’t just save you a lot of time, it will also improve your tax refund or net payable.
David Lo is a recognised provider of accounting, tax planning and advisory services to all ...