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.
- 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.
- 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.
- Don’t miss any deduction that you can claim a refund for, and you will end up with more money.
- 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.
- 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.
- 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.