Top ten tax tips for individuals
6. Prepay interest
Prepaying interest 12 months in advance before year end on your rental property or margin loan, is an excellent strategy for those that will have a lower income next year due to factors such as maternity leave or redundancy.
7. Keep your receipts
With the ATO increasing its audit activity this year, yet again it is important that you keep your receipts. The ATO motto is no receipt = no deduction so you could be costing yourself dollars by not keeping those dockets!
8. Spouse super contribution
If one spouse’s income is less than $10,800 then the other can put up to $3,000 into the spouse’s super fund and receive an 18 percent rebate ($540) in tax.
9. Get a great accountant
Great accountants are like quantity surveyors: they know where the boundaries are. Avoid paying too much in tax or leaving yourself open to a visit from the ATO. And their fees are tax-deductible!
10. Just do it!
Now you’ve got some great tax tips, it’s time to take action. Times are tough so every dollar saved counts. Remember that effective tax planning should be over 365 days of the year, not merely the few weeks before 30 June.