If you do not assess your current financial situation, you are more likely to pay unnecessary taxes. Irrespective of your income bracket, you can make some adjustments to protect your income from taxes. Hiring a tax accountant to help you make the adjustments can save you money.
If you want to minimise your tax, here are 5 tax tips for different income brackets from our tax accountant:
1. Contribute to Superannuation
Superannuation can help you pay less income tax. It can also help you pay less tax on investment returns.
In addition, super funds can offer you death and total and permanent disability through your super.
Therefore, you can contribute to superannuation, despite the recent changes. You do not have to worry about losing your super. Why? It is protected against bankruptcy.
2. Concessional Contributions
It is important to decide whether to make or not to make additional concessional contributions. It is easy for self-employed people to make concessional contributions.
You can use it to contribute to your super. How do you make concessional contributions? If you are an employee, you can sacrifice your salary.
Making concessional contributions can reduce your personal income tax.
3. Non-Concessional Contributions
You will have to decide whether to make or not to make non-concessional contributions to your super fund. Making non-concessional contributions can save you more money for your retirement.
However, it might not help reduce your taxable income. If you meet all the requirements, however, you might be eligible for the Government’s Co-Contribution.
4. Co-Concessional Contributions
If the assessable income of your spouse is under $37,000, you can make non-concessional contributions to the superannuation fund of your spouse.
If you can make non-concessional contributions to the superannuation of your spouse, you will increase the balance in the superannuation funds of your spouse and reduce your taxes.
You reduce your taxes since you can get the Spouse Contributions Tax Offset.
5. Pre-pay Deductible Interest or Bring Forward Deductible Expenses
If you do not have the funds and you expect your income to reduce in the next financial year, you can pre-pay deductible interest or bring forward deductible expenses. If you can do this, you can reduce your taxable income.
You can apply this in the following areas; car expenses, travel expenses, clothing expenses and other work-related expenses.
If you are planning your finances, do not leave everything to chance. It is more important to hire a tax accountant to assess your current financial situation. Your accountant can help you make the necessary adjustments to reduce your taxes.
Looking for a tax accountant in Perth, Western Australia to minimise your tax? Or need a customised plan? The Perth Tax People can help you create a customised plan and minimise your tax.