Top ten tax tips for individuals
Here are some excellent tips for you to get your house in order and increase your tax refund.
1. Car logbook
Deductions can be in the thousands if you use your car for work purposes and keep a log book for 12 weeks. Keep all costs associated with the running of your car.
2. Super co-contribution
If your income is under $31,920 and you contribute $1,000 post-tax into super, the Government will match it dollar for dollar. It amazes me how few people actually take advantage of this extra $1,000. Whilst the co-contribution is less generous this year, it is still free money!
3. Education Tax Refund
Don’t miss out on this tax rebate which gives a 50 percent refund on certain education expenses up to $780 expenditure for each primary school child and $1,559 for each secondary school student. You must be eligible for Family Tax Benefit Part A to receive this.
4. Minimise Capital Gains Tax (CGT)
The stockmarket had a bumper year this year so you may have made a nice capital gain or two. Reduce CGT by selling any non-performing shares that you may be holding. Any unrealised gains should be sold after 1 July to defer tax for another year. And remember that if you hold shares for more than 12 months, you reduce CGT by half.
5. Salary sacrifice into super
For those under 50 years of age, you can contribute up to $25,000 per year into super and only pay 15 percent tax. This figure increases to $50,000 if you are over 50. Build your wealth quicker rather than paying up to 46.5 percent.
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