Want to Make 2015 Tax Time Easier?
WANT TO MAKE TAX TIME EASIER AND CUT YOUR TAX BILL by 30%?
For most business owners and employee 30 June is a time of reconciling, sorting and collecting receipts for Tax Time to present to your accountant.
If you want know how to cut your tax bill in half, you need to understand the basic mechanics of TAX, income and expenses and how it comes together.
So firstly the amount of TAX you pay is calculated as a percentage of what the ‘’taxable income would be’.
In addition to your salary, investment income such as rental from property, shares and government payments will include part of your income.
You can reduce this income on the expenses you can claim as deductions which are incurred in order to earn your income.
This gives you the proportion of your income that you are required to pay tax on—is reduced by the amount of your deductions.
On top of your deductions, you may also be entitled to further reduce your tax payable by claiming tax offsets.
Success Accounting Group now works out 3 ways that you can use to reduce your tax now.
1. Up to $300 – No receipts required
Claim $300 worth of work-related deductions without showing receipts.
Beware if you are claiming for more than this amount, you must have written evidence for your
total expenses, not just the amount over $300.
There are a few types of expenses such as travel and meal allowance that have different
requirements so check with your Accountant on more information about what ‘written evidence’
you may need to show for what types of claims.
WANT TO MAKE TAX TIME EASIER? JOIN SUCCESS ACCOUNTING GROUP NOW
Join Success before 31st of July to access our individual and business FREE end of Financial Year Checklist.
2. Take advantage of ALL deductions available
There is an extensive list of deductions that could be relevant to your business and personal
situation such as motor vehicle expenses, home office expenses, business interest on loans,
income protection premiums and work-related expenses,” said Lan Nguyen, Chartered
Accountant of Success Accounting Group.
For example, if you have worked from home as an employee or the business owner in the year
you may be able to claim some of your internet, utility and phone costs.
To learn more on the type of deductions you can claim, please visit our website to browse you
what the general tax planning strategies would be at 30 June For a list of the allowable
deductions, you can also browse the ATO website at www.ato.gov.au
3. Top up your super
Though neither a deduction nor an offset, salary sacrificing into your super could be an effective
way to potentially reduce the amount of tax you pay as well as GROW your super
It may be a smart way to build up your super balance at retirement depending on your personal
circumstances.
Australians are tax at their marginally tax rates which is directly depended on the level of income
they earn. For example to, if you are earning from $80,000 per annum, your marginal tax rate
would be 37 per cent. This compares with salary sacrifice for most people would be capped at
only 15% tax rate when received by your fund.
In order to learn more how to salary sacrifice in your super fund in detail, including its
limits you can put into a single year, talk to Success Accounting group about how you too
can cut your tax by more than 30% legally.
Source www.taxcal.com.au
WANT TO MAKE TAX TIME EASIER? JOIN SUCCESS ACCOUNTING GROUP NOW
Join Success before 31st of July to access our individual and business FREE end of Financial Year Checklist.
Click here to learn more tax saving tips.
Lan Nguyen is a Chartered accountant, speaker and founder of Success Accounting Group.
She enjoys educating her personal and business clients in how to increase cash flow through smart
ways to reduce their tax bill legally so that they can reinvest their tax dollars in growing their
wealth, investments and business.
Connect with Lan:
About Lan Nguyen
Lan is the Founder and Chief Strategist at Success Accounting Group, Melbourne based CA firm. In a matter of short 8 years she has built up a reputable Chartered accounting firm with 3 offices and a team of 6 professional accountants and support team members. Her mission is to provide Innovative and Strategic Financial advice to help her customers make smarter financial decisions today for a brighter future.
Success Accounting Group is for established business owners who would like help to grow a sustained business. As a business owner you understand what drives your business success with our accounting team taking care of the rest.
Success and Wealth
Success Accounting Group Pty Ltd
Oakleigh, VIC, 3166
