With EOFY right ahead of us, it’s well and truly time to make last time efforts to prepare for 30 June. To help you experience a seamless tax return process and minimise your tax liability, we have prepared the following tax tips which outline how and what you can claim as a deductible expense and prepayments you can make this side of the financial year to reduce your personal income tax.
Let’s explore some broad areas in which you could carry forward deductible expenses:
- Vehicle maintenance: fuel, registration, insurance, lease payments. Make sure to differentiate what is personal use and work related.
- Education: Online tutorials, software programs and some tuition fees are deductible if they were all for the benefit of your company and training staff.
- The more obvious category includes business expenses such as advertising costs, business travel expenses, office rent and building utilities, your wages, stationary and so on.
- Do you work from home? You can deduct expenses incurred by your business such as power bills, Wi-Fi, rent, property taxes.
- Have you made charitable contributions? Donations to charities are deductible if you chose a qualified organisation. Make sure you note any cash or business goods donations as well, as these can be included too. Keep receipts or letters of acknowledgement.*
- Do you have large medical expenses? Costs include private healthcare insurance, medical supplies and equipment, prescriptions and medication.
- According to the ATO, if you don’t have a receipt, you can’t claim a deduction. Keep a safe file for storing receipts for 2024 going forward. If you have a damaged receipt or it has become faded, you are entitled to claim up to a maximum of $300 without receipts.
Now, let’s take a closer look at prepaying deductible interest…
- Good news for those who have achieved a higher income tax year – you may be able to offset this higher income threshold by prepaying interest on some of your loans.
- Investigate if your loan provider allows for interest prepayment, as there can be fees applied for prepayments
- Not everyone is eligible for the benefit of prepaying interest. Why not contact us today to find out your taxable boundaries.
Make sure to talk to your Locumsgroup accountant or check the ATO website as tax laws change regularly.
For personalised advice please get in touch with us via the Locumsgroup website today.
