A tax expert has advised three things you should do now to potentially increase your tax returns.
H&R Block’s director of tax communications Mark Chapman urged Australians to take advantage of the tips before the end of the financial year on Sunday.
Mr. Chapman told it 7News the first thing you should do is go shopping.
Because the upcoming tax cuts will reduce the amount taxpayers will get back in deductibles next fiscal year, now is the time to buy in bulk.
On average, taxpayers would see a return of 32.5 cents in the dollar this year, but that will drop to 30 cents next year.
The website of the H&R block states If you are employed and work from home, occasionally or always, you are entitled to a deduction.
Items such as furniture, computers and associated hardware and software that cost less than $300 can be fully depreciated immediately.
Mr Chapman also recommended ‘paying for a membership or a subscription or insurance in advance, for example’.
Mark Chapman, tax communications director at H&R Block, gave three simple tips to potentially get more back from the tax authorities
His second tip was that Australians should top up their pensions.
Mr Chapman said: If you make a personal contribution to your pension fund, you can claim this back as a tax deduction.
The website of the H&R block states you can make additional contributions up to your concessional contribution limit and claim an income tax deduction for this.
The ceiling for concessional contributions for the year 2024 is $27,500.
By 2025, this amount will increase to $30,000.
According to the ATO website: ‘If you claim a tax deduction for personal super contributions, these are concessional contributions and actually come from your pre-tax income.’
‘They are taxed in the fund at a rate of 15 percent.’
Because the upcoming tax cuts will reduce the amount taxpayers will get back in deductibles next fiscal year, now is the time to buy big.
Mr Chapman said the third and final tip was to make a donation to charity.
Donations of more than $10 to a registered charity are tax deductible, but you must keep the receipt to claim it back.
The ATO states the recipient must be a deductible gift recipient (DGR).
This is an organization or fund that is registered for receiving tax-deductible gifts or donations.
Please contact the Australian Taxation Office about what you can and cannot reclaim in taxes.