7 Handy Tips To Pay Less Tax In Australia

There’s a saying that goes the only certain things in life are death and taxes. Stepping into the realm of adulthood is pretty awesome especially once you start earning money for yourself and begin to reap the benefits. However, a number of responsibilities will start to come your way along with the perks and one of them is filing an annual tax return. Filing your taxes doesn’t have to be difficult and daunting. In fact, there are ways that let you save some money when you do so.

Here are 7 handy tips so you can pay less tax in Australia:

1. Don’t be shy in claiming expenses related to your job

One of the most useful tricks that anyone can do to boost your tax return is to take note of all the expenses that you incurred while doing your job and claiming deductions on these items. This is totally legal and can save you a lot of money in the future.

One example is transportation expenses so if you travel a lot for work, go ahead and save the receipt that you used for your cab, plane, train, or hired private cars.

2. Make sure your receipts are organized

One of the most basic but helpful things that you can keep in mind when doing taxes is to make sure that you save your receipts and keep them in a file. These receipts might not look important, but they serve as a reference for the items that go on your papers. Over the course of the year, it’s hard to remember every single purchase that we make. For some people, it’s even harder to remember if they can get deductions on it or not. Keeping a file is a handy way to make sure you don’t overlook any items.

3. Support charities

One of the perks of making donations is that you can claim deductions later on your tax return. Another thing to keep in mind is that there’s nothing in the law that stops you from making as many donations to as many charities as you want. This way, you can support organizations with causes that are close to your heart and up your tax returns as well.

4. Get professional help

Sometimes filing taxes can be confusing, and we can’t blame you! It’s totally fine to ask for help from an accountant. In fact, that’s the exact reason why accountants are there in the first place. You can easily google any tax advisers or accountants in your area and they will be more than happy to assist you and earn you the savings that you deserve.

5. Medicare levy

All Australians benefit from free healthcare and of course, that is a good thing. However, you can save on taxes by getting a private insurance plan if you generate an income that is over $90,000.

6. Invest wisely

Investing in shares is one way to boost your budget, but keep in mind that if you’re selling any investments that have earned you money, you have to pay taxes on those items. The same goes with shares.

7. Plan your timing

Sometimes knowing when to make a purchase can help you save a bit more by being mindful of the deadlines in filing a tax return. Purchases made before the month of June will ensure returns sooner, but if you make an expense after the month of July, those will have to go on the next taxable year.