Maximise your tax savings this tax time

To maximise your tax savings, you need to make sure you’re aware of all of the deductions you’re entitled to and that you’ve got all the documents you need to make your claims. That way, you should receive the refunds back from the ATO that you are due.

The general rule is that you can claim a tax deduction for most expenses from carrying on your business, as long as they are directly related to earning your assessable income.

Deductions you can claim

There are a whole host of eligible deductions which relate to different occupations and industries, which your accountant will be aware of.

These can be the more obvious things, such as motor vehicle expenses, home-office costs, business travel expenses, repairs, maintenance and replacement expenses etc.

There are three golden rules set out by the ATO for what they accept as a valid business deduction:

1. The expense must have been for business purposes, not for private use.
2. If the expense is for a mix of business and private use, you can only claim the portion that is used for business use.
3. You must have records to prove it.

Super contributions

A good analogy is that making super contributions is like taking money from your left pocket and putting it in your right. It stays as your money and is a useful tax minimisation measure.

By depositing money from your personal or business account into your super fund, you’re getting a tax deduction. You’re allowed to deposit $27,500 as a tax-deductible amount this tax year and remember that you can carry back to the previous five years to top up if you didn’t make the maximum deposit in those years. At TaxAssist Accountants we can help you to decide if you should do this.

Good record keeping is key!

The key to ensuring you can claim the tax deductions you are entitled to, is to keep all the records that you need including invoices, receipts and bank statements and to seek expert advice, according to your specific situation. It’s a sad fact that a high percentage of taxpayers underclaim due to poor record keeping. Make sure you’re not one of them!

You may be challenged by the ATO if you are claiming for something out of the ordinary, but this depends on the industry in which you work, and whether the items are aligned with the way that you earn your assessable income. Make sure you’ve consulted an accountant if you are in doubt as to what you can claim.

Contact TaxAssist Accountants

If you need any help or advice this tax time, please contact us on 02 9608 3707 or complete our contact form. We’ll be glad to help.

Date published 22 Jun 2023 | Last updated 22 Jun 2023