It’s Time to Get Proactive at Tax Time
Do you scramble around at tax time every year sifting through paperwork, trying to find receipts and records? Would you like to pay less tax but are not proactive enough? Is your accountant being proactive on your behalf?
You need to be confident you are claiming everything you’re entitled to, not only to reduce your immediate tax debt, but for your future self.
At a basic level, make sure you’re claiming all that you’re entitled to. If you spend money during the year that relates to your income, keep the receipt and claim it.
Some items you probably didn’t realise you could claim (depending on what you do for a living), include sunglasses, hats and sunscreen; makeup and personal grooming expenses; workplace entertainment; handbags and even vet bills.
Consider your health
If you earn over $90,000 for singles, or $180,000 for families, and don’t have private health, you’ll pay an additional 2% medicare levy on top of this. If you shopped around for the right policy, private health cover should cost less than this 2%.
Are you self-employed?
Is your business owned through a Trust? Have you considered all of your options?
Owning your business through a Trust has many benefits, can give you more flexibility and allows you to plan your tax better.
It also allows lets you take drawings, rather than a salary, which in turn means you can avoid investing in your Super right away. And it lets you to distribute money to partners or family members, thereby reducing your own taxable income.
Knowing whether you should choose a Discretionary Trust or a Family Trust and how to set it up correctly can be confusing. Setting your business up under the correct structure can have a huge impact not only at tax time, but when it comes time to sell your business.
Look at your investments
whether you are employed or self-employed, if you have a property portfolio, the way it is structured has a vital impact on the amount of tax you pay.
Navigating the rules and regulations regarding ownership and management of investment properties is complex. And if it’s not done properly, you could incur a hefty and unnecessary tax bill.
Chartered Accountants aren’t licensed to give advice on investments. If you like the idea of building an investment portfolio and don’t know where to start, Campbell Green’s in-house accountants work alongside our financial advisors to ensure you get the most out of your tax return and savings, helping you pay less tax at the end of the financial year.
If you are proactive throughout the year, tax time should be a breeze and getting started on your investment portfolio could be a lot closer than you think.
Tax rules and regulations change all the time and it’s important to have someone working with you, not just to minimise the amount of tax you need to pay, but to proactively seek opportunities where you can invest and start making your money work for you.
Many people think you need a lot of money before seeking financial advice. We believe in giving you the right advice to get you where you want to be financially, even if you’re just starting out.
Seeking professional help at tax time will not only save you a whole lot of time and headache, it will also make sure you’re not paying more tax than you should be.
If you want to truly minimise the amount you need to pay at tax time, leave it to the experts. Contact us at Campbell Green and one of our tax experts will be happy to help.
