Ways to improve your tax refund
Australians are always looking for ways to improve their refund and so we listed below on how you can improve your tax refund.
Have proof of everything
Keeping track of all your bank statements, invoices and receipts is the first step. Make sure that you log every time you make a purchase. Make sure you have a place to save everything, so you don’t have to track 12 months of your purchases when the tax time commence. This is not only to save time but also best way to make sure that you have everything covered.
Make charitable donations
Donating to a charity that is close to your heart is not only for a good cause, this will also help you lower your tax bill. You can claim a deduction for anything over $2. Just make sure you secure a receipt or bank statement for it.
We wrote about it here: https://www.thetaxaccountant.com.au/post/gifts-and-donations
Sweat the small stuff!
While $3 here or $5 there may not seem like much in the long run, when you add it up across the whole year the small stuff can add up to improve your tax refund.
For example, keeping track of just $6 worth of expenses per week across a whole year could increase the refund of a taxpayer earning $50,000 a year by $100. So you can see how, if it’s a bunch of $30 or $50 receipts you’re forgetting about, you could miss out on $1,000 or more in your tax refund!
Add all work-related expenses to your tax return and you’re well on your way.
Prepay your bills
It might be convenient for you to pay your bills on a weekly or monthly basis however you can pay some bills like a professional subscription in a lump sum. Since you claim a deduction this year expenses which wholly or partly relate to next year, it will not only help you reclaim these expenses, but you will also receive a higher refund in the current year.
Review Your Health Insurance
Health insurance companies have announced price hikes from April 1, 2018, as well as changes to the services that are covered under the policies. So, if you haven’t already, it’s time to check what illnesses and services you’re covered for, whether it’s worth being covered at all or whether you should change insurers. If you are to claim the private health insurance premium as a tax offset when you lodge your tax return, it makes sense to make it worthy.
Disclaimer: This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice