6 Quick Tips to Reduce Your Tax Liability

Sydney CBD tax agent

Who doesn’t want to save money, especially taxes? And, so are you willing to save more in your pocket after lodging a tax return. Here’re some tips for you to save more on your taxes.

  1. Maintain a clean record of your deductions, taxes, and other calculations involved. When you claim a deduction, you will get a receipt for each. And when the ATO asks for any record, you can produce the same without any worries.
  2. Donate and claim a refund for the same in your tax return. All donations more than $2 towards a registered charity are subject to a tax deduction. So, you can raise this with your tax return and claim a refund.
  3. Don’t miss any deduction that you can claim a refund for, and you will end up with more money.
  4. Managing when you invest in tax-deductible expenses right against your income can help you build healthy finances. For example, if your current income is going to attract a higher tax and you have a large chunk of tax-deductible expense, you can invest in that during the period.
  5. Planning the right investment strategy also helps reduce your tax liability. However, since there are various investment options available, it’s better to get advice from a tax agent in Sydney CBD.
  6. Reduce your tax liability by paying installments of a loan. If you have good savings every month, interest on that amount will be taxable. You can prevent that tax by shifting your savings to a home loan, getting a new home, and reducing your tax liability.

And there are more ways to save the amount you pay as tax every year.