Tax planning can make a huge difference in how much you have to pay each financial year. Compiling your receipts, invoices, and other financial documents can be very tedious and time consuming. The best way to complete the process as smoothly, quickly, and cheaply as possible is to have a plan. The following tax tips will help you lower your annual tax bill.
Tax Planning Tip 1: Delay Your Bonus
If possible, delay your bonus, so it is paid out after the 30 June deadline. This will push that extra income beyond this year’s tax cutoff, so it doesn’t increase your bill.
Tax Planning Tip 2: Delay Invoicing if Possible
Just like your bonus, try to delay any outstanding invoices until after the June deadline. This can be tricky if you need the income sooner rather than later. Make sure you can make ends meet until then. If not, send the invoices as necessary but try to hold on to what you can until after the financial year ends.
Tax Planning Tip 3: Take Advantage of Tax Write Offs
Some businesses may be eligible to immediately write off assets that cost $6,500 or less. If you aren’t sure what can be written off, contact a licensed accountant. They can help you decide what you can apply and look for any assets you may have missed.
Tax Planning Tip 4: Prepay Expenses
Prepay your income protection insurance this year to apply the deduction to your current tax bill. You can also do this with other expenses, like interest on margin or investment loans.
Tax Planning Tip 5: Utilise All Applicable Tax Rebates
Make sure you take advantage of all applicable tax rebates. There are different rebates that may apply, including medical expenses, spouse super contributions, and educational rebates. An accountant can help you figure out which are applicable to you.
Tax Planning Tip 6: Early Super Payments
Businesses are required to pay Superannuation fees in July. If you pay them the month before, they can become another deduction on this year’s taxes.
Tax Planning Tip 7: Buy Supplies & Make Repairs
Buy supplies and make any repairs on investment properties before 30 June. These can be applied to your current taxes for even more savings.
The Tax Planning Pro Tip
When it comes to taxes, you can do it yourself, or you can increase your potential savings by enlisting the help of a professional. Brian and the team at BIS Cosgrove are ready to help you find tax rebates, write offs, and more to keep your yearly payment as low as possible. Contact us today to start saving!