We do a lot of tax returns. One thing we constantly hear our clients say is “I didn’t know I could claim that!” or “I wish I had kept my receipts!”
To help our clients we’ve been giving them a report of what strategies they can implement to maximise their refund next financial year.
Here are our top 3 strategies:
1. Keep a Log Book for your Motor Vehicle Expenses
If you use your motor vehicle for work make sure you keep a 12 week log book to work out the work % of your vehicle use. By doing this, you will be able to claim this % of all your expenses during the year including fuel, depreciation, insurance and registration.
2. Prepay the Interest on your Investment Loans
Your deductions are claimed in the financial year they are paid. Therefore, by prepaying the interest on any investment loans means you claim the deduction now instead of waiting to the following financial year.
3. Make sure you have Income Protection Insurance
Protecting your number one asset, your income, is extremely important. It’s also worth noting any premiums you pay outside of superannuation are tax deductible (and when you think about it, the tax refund you receive lowers the out-of-pocket cost of the premium).
The other way we help our clients is by introducing them to MyProsperity, our online wealth portal. MyProsperity has bank feeds linking into it allowing you to “tax-tag” your transactions. Not only do you have a simple way of keeping your receipts but now you print a simple list for your accountant at the end of the year.
Interested in getting more bang or your buck? Make sure you talk to the Change Accountants & Advisors team about planning now to maximise your tax refund next year.