• New Wave Accountants

7 Tips to Help You Get the Most Out Of Your Tax Refund

Tax time is upon us, so it's essential to know how to maximise your tax refund and put more dollars in your pocket. Here are seven valuable tips to help you achieve this. Read on!


1. What should you claim if you work from home?


Are you wearing ugg boots to work? You probably work at home. If this is the case for you, keep in mind that a percentage of your home-running expenditures may be claimed as a tax deduction. You may be eligible to deduct the work-related part of the following expenses:


  • Heating, cooling, and lighting of the home office room.

  • the depreciation of home office furniture and furnishings

  • the depreciation of office equipment and computers

  • the depreciation of computer consumables, stationery, telephone and internet expenses


2. Are you studying to advance in your existing career?


If you're drowning in textbooks, the good news is that you may claim them, as well as course fees, lodging, and food if you study away from home. You can also disclose the costs of computer consumables and internet access, as well as the depreciation of the computer used for studying. Keep the following course conditions in mind:


  • The course must be sufficiently related to your present job;

  • it must improve particular skills or information necessary in your current job

  • it is likely to result in an improvement in your income from your current job.


3. Have proof of purchase for everything


Have the following ready, so you can get a full refund on items that qualify as a tax deduction:


  • Receipts

  • Credit card statement

  • Bank statement


When doing your bookwork, keep in mind that you may only claim a tax deduction for expenses in the year you incurred them.


4. Prepay Your Bills


Strategise your tax deductions by paying bills far in advance and taking advantage of your tax year. If you pay a bill in advance, you can write off the proportion of the bill that has already elapsed.


For example, if you pay a phone bill in advance for a year, you can write off 12 months because you are prepaying for a whole year.


5. Put Money Into A Super Fund


This is especially useful for couples when one member does not work or earns less than $40,000 per year, including super contributions and fringe benefits because super contributions can decrease the tax paid by the other spouse.


The partner with the more significant income can contribute up to $3000 to the non-working partner's super fund and receive an 18% tax offset, totalling $540.


Those earning modest income can also donate extra money to their super, and the government will match 50 cents for every dollar given. Anyone earning up to $52,000 each year can profit from putting more money into super.


6. Sell off the losing investments


If you have a portfolio of loss-running investments, you can use the losses to offset gains. If you have a loss-running investment that you hold until the end of the financial year, you can distribute the profit by selling it to reduce your tax bill.


7. Make charitable donations


All donations over $2 are tax-deductible. If you donate less than $2, it's only a tax deduction if you keep the receipt to claim the tax deduction later. It is also important to declare the value of donated items.


Conclusion


Tax time can be stressful, but with a little bit of forward planning, you can ensure you're getting the most tax back you possibly can.

Don't let the taxman get you down.


Are you looking for bookkeeping services on the Gold Coast? New Wave Accounting in Queensland, Australia, offers end-to-end accounting and bookkeeping services that help scale and grow small businesses in several industries. Get in touch with us today!




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