McCarthy Money are experts in tax minimisation in Australia. We can assess your situation and work out a strategy to legally minimise your tax obligation moving forward.
Why Tax Minimisation is Important
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.
Tax Minimisation Strategies
🧾 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.
For example if you’re taking a two day business trip, you could claim all ancillary expenses incurred from your front door until you come back and open it. Did you know that if you have young children and need to take them on the trip, you can claim the whole family’s expenses?
But you will need a clear itinerary which substantiates the reason for the trip and what you did on the trip.
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.
If you’re in this situation, then you’re missing out on more than a big tax return. You might be impeding your lifetime financial progress.
If you feel that the amount of tax you’re paying is impeding your financial progress you need to consider ways to minimise it. McCarthy Accountants are experts in tax minimisation, and we would like to help you. McCarthy Accountants assess your current level of taxation, forecast the amount likely to be paid in the future, and work out a strategy for you to legally minimise your tax obligation moving forward. These tax minimisation techniques are used fairly commonly when it comes to property investors or anyone who has a number of deductions that they claim every year.
While there are several ways to reduce the amount of tax you pay by increasing the amount of deductible expenses, what our clients really want is to use the tax they pay to benefit their family or financial position in some way. By using money that you pay in income tax to help build assets for your financial well-being, you can potentially fast track your investment strategies. Sounds too good to be true, doesn’t it? Don’t sit and wait. Talk to one of our Tax specialists today so that we can show you how this can be achieved.
McCarthy Accountants can assure you that tax minimisation is possible and are helping clients to do just that every day. Why not call or come and see one of our specialist accountants and let us demonstrate how your family can also benefit.