Tax minimisation can save you thousands
Whether we appreciate it or not, tax plays a large part in our lives. It’s often the cause of stress and confusion, and it can take up to one-third of our incomes. Despite this, we usually don’t realise one simple fact.
Most of us pay more in tax than what we are required to.
There are many reasons for this situation, ranging from the complexity of tax law to getting into a routine of just ‘ticking the boxes’ early in our careers.
Fortunately, there are strategies you can use to minimise the amount of tax you pay. That’s what tax minimisation is about. It’s very different from tax avoidance, which is where someone tries to claim deductions they are not entitled to.
Let’s have a look at some tax minimisation strategies that may be available for you.
Common strategies for minimising tax
Keep good records!
What you don’t have a document for, you won’t be able to claim.
McCarthy Money assists people with this. We will give you folders, make sure all the paperwork is kept, is in the right place, and is maintained for an accountant.
Keeping the good records will ensure you maximise your refund.
Keep in touch with your accountant
If you’re looking at leasing a car, taking a business trip, or even getting repairs done to an investment property, you should touch base with your accountant to make sure you have all your ducks in a row.
Your accountant is there to help you keep organised and informed in order to minimise your tax, so getting in touch shouldn’t be a once a year event.
Lodge an Income Tax Withholding Variation
This one sounds like a mouthful, but it’s an important part of managing your tax. An Income Tax Withholding Variation means that you do not get an end of financial year tax refund. Instead, you pay less tax out of your income each month.
This strategy will help you better manage your cash flow, and direct that extra money where it should be directed. While you could spend it, you could also use it to pay off debts like credit cards or even build long term assets.
Extras for Property Investors
Property investors in particular qualify for a number of tax concessions, which the Australian Tax Office has implemented to support local rental markets.
As an investor, new properties give you tremendous tax benefits, such as the 2.5% per annum depreciation allowance, which effectively recovers the full cost of the new home over 40 years.
Start Minimising Your Tax!
There’s so many legitimate deductions around. There are depreciation allowances, travel expenses, home office expenses, managing and running your portfolio, and even library expenses for books and knowledge. There’s so much that you can claim for.
If you’re willing to prepare these documents yourself and stay up to date with the latest changes from the ATO, then of course you can file your tax on your own. But if you’d prefer to put it in the hands of experts and in doing so minimise the amount of tax that you pay, then McCarthy Money will assist you.
We have decades of experience in helping Australians minimise their tax, and thousands of happy clients.
Our services start at the initial plan preparation, through to tax returns, and also include preparation of Income Tax Withholding Variations. We can also directly access the tax office lodgment portal, which means we can prepare and lodge your tax return on the spot.
What’s more, our staff are friendly and are available to answer any tax queries along the way. We’re looking forward to hearing from you through the form below!
We are experts in tax minimisation in Australia! We will assess your finances and help you legally minimise your tax obligation this year.