Further Ways to Increase Your Tax Deductions
As discussed in Tax Tips Part One: Get More from Your 2013/14 Tax Return, the end of financial year is almost upon us.
In part one, a number of potential deductions your accountant could help you with were covered. Here, the list continues:
- The child care tax rebate – Not income tested, this rebate is available if your child attends a Child Care Rebate-approved provider and you have work or study commitments. Covering up to 50% of your out-of-pocket child care expenses, you can claim up to $7,500 per child until the end of the 2014 financial year. In order to meet the eligibility criteria, you and your partner must meet the government-outlined “work, training and study test”.
- The super co-contribution scheme – If you earn less than $48,516, you’re able to receive tax free super co-contribution payments from the government. If you earned $33,516 or less this financial year, the government gives you 50 cents for every dollar you contribute to your fund (up to $500). For every dollar you earn over $33,516, your entitlement is reduced by 3.33 cents.
- Dependant tax offset – At the start of the 2012-13 financial year, the ATO changed the tax offsets for dependants. These changes consolidated eight dependency offsets into one single, non-refundable offset.
- Get a depreciation schedule for your investment property – Tax depreciation schedules can be carried out for both new and old rental properties. A financial planner can complete a schedule for you – the cost is tax deductible.
- Claiming car expenses for work. There are a number of ways you can claim car expenses – however it’s best to keep a log book throughout the year. This allows you to choose the method you want to use at tax time for the best return.
With many tax changes proposed under the new budget, businesses and individuals need to be aware of how they may be affected. A financial planner can help you to navigate these changes should they become law.
It is important to understand your entitlements when it comes to completing your tax return, and it is important to keep abreast of changes. By seeking the help of a financial planner who understands your situation and financial position, you’ll get the best possible tax return.
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The end of financial year is a great time to get your finances in order and take control of your money.Read more