Features
Happy returns
Learn how you can get the maximum out of your tax return
6 Simple budget blunders even smart women make
Skimping on health insurance
Private health could be more cost-effective than paying the Medicare levy, says financial planner Louise Woodger. Anyone earning more than $50,000 pays a 2.5 per cent levy, but having private insurance reduces this to 1.5 per cent. Woodger adds that if you take up insurance when you're under 30, you'll attract a lifetime discount on your premiums.
Not salary sacrificing
Most employers allow you to pay for work-related cars and laptops through salary sacrifice or a novated lease, explains Woodger, so you can buy a work-related asset with pre-tax income, therefore reducing your taxable income - and tax bill!
Forgetting occupational benefits
Check out the Australian Tax Office's website, www.ato.gov.au, for a list of tax deductions relevant to your specific job. For example, nurses may claim for renewing their annual practising certificate, while flight attendants can claim for new luggage.
Selling assets
Financial planner Desiree Fraser warns that all appreciating assets - including shares or property - attract a capital gains tax upon sale, however, this amount is halved if you own the asset for a year or more.
Binning receipts
Spending more than $1500 on medical bills in a financial year entitles you to a 20 per cent tax refund (as well as Medicare discounts), says Fraser.
Not claiming property perks
If you own an investment property, bank fees, council rates and repairs may all be tax deductible, explains financial planner Renate Tonks. Fraser adds that depreciable assets, like light fittings or carpet, could also be deductible.
More, more, more ...
Don't forget to claim deductions for these items
Visit www.fpa.asn.au, or www.orix.com.au for novated vehicle lease calculators, or www.depreciator.com.au for a depreciating rental asset estimator.
Ask an expert
Ali Noroozi, Tax Counsel, Institute of Chartered Accountants
Q Does tax-deductible mean it's free?
A No. If an item is tax-deductible, you may claim a percentage of its cost (depending on your tax rate) as a refund. For example, if you bought an item for $1000 and your tax rate was 45 per cent, you could claim $450.
Q I sometimes work from home. How do I claim for use of my laptop?
A The easiest way to work out the depreciation of a laptop or other work-related asset (such as home office furniture) is to use the online calculator at www.ato.gov.au. Any refunds will be spread over several years and will depend on the item's cost and whether it's used solely for work. For example, for a $1800 laptop used 70 per cent for work, you could claim $207 in the first tax year, $420 during the next two years and $211 in the final year.
Q I want to save money by filing my tax return online this year. Should I?
A If your sole income comes from your salary, it's probably easier to complete your tax return online at www.ato.gov.au. However, if you own property or receive income from multiple sources, a chartered accountant may be able to minimise your tax. Visit www.icaa.org.au to find one in your area.
6 Simple budget blunders even smart women make
Skimping on health insurance
Private health could be more cost-effective than paying the Medicare levy, says financial planner Louise Woodger. Anyone earning more than $50,000 pays a 2.5 per cent levy, but having private insurance reduces this to 1.5 per cent. Woodger adds that if you take up insurance when you're under 30, you'll attract a lifetime discount on your premiums.
Not salary sacrificing
Most employers allow you to pay for work-related cars and laptops through salary sacrifice or a novated lease, explains Woodger, so you can buy a work-related asset with pre-tax income, therefore reducing your taxable income - and tax bill!
Forgetting occupational benefits
Check out the Australian Tax Office's website, www.ato.gov.au, for a list of tax deductions relevant to your specific job. For example, nurses may claim for renewing their annual practising certificate, while flight attendants can claim for new luggage.
Selling assets
Financial planner Desiree Fraser warns that all appreciating assets - including shares or property - attract a capital gains tax upon sale, however, this amount is halved if you own the asset for a year or more.
Binning receipts
Spending more than $1500 on medical bills in a financial year entitles you to a 20 per cent tax refund (as well as Medicare discounts), says Fraser.
Not claiming property perks
If you own an investment property, bank fees, council rates and repairs may all be tax deductible, explains financial planner Renate Tonks. Fraser adds that depreciable assets, like light fittings or carpet, could also be deductible.
More, more, more ...
Don't forget to claim deductions for these items
- Depreciable work-related assets, like briefcases, worth less than $300.
- You can claim 26 cents for every hour spent working in your home office to cover heating, lighting and furniture depreciation.
- Charity donations, such as clothing that is less than a year old, or art. Donations must go to a registered Deductible Gift Recipient (DGR). For more information, visit abn.business.gov.au
Visit www.fpa.asn.au, or www.orix.com.au for novated vehicle lease calculators, or www.depreciator.com.au for a depreciating rental asset estimator.
Ask an expert
Ali Noroozi, Tax Counsel, Institute of Chartered Accountants
Q Does tax-deductible mean it's free?
A No. If an item is tax-deductible, you may claim a percentage of its cost (depending on your tax rate) as a refund. For example, if you bought an item for $1000 and your tax rate was 45 per cent, you could claim $450.
Q I sometimes work from home. How do I claim for use of my laptop?
A The easiest way to work out the depreciation of a laptop or other work-related asset (such as home office furniture) is to use the online calculator at www.ato.gov.au. Any refunds will be spread over several years and will depend on the item's cost and whether it's used solely for work. For example, for a $1800 laptop used 70 per cent for work, you could claim $207 in the first tax year, $420 during the next two years and $211 in the final year.
Q I want to save money by filing my tax return online this year. Should I?
A If your sole income comes from your salary, it's probably easier to complete your tax return online at www.ato.gov.au. However, if you own property or receive income from multiple sources, a chartered accountant may be able to minimise your tax. Visit www.icaa.org.au to find one in your area.
Louise Woodger 02 9230 0166 Renate Tonks Lion Eagle Pty 08 8110 0000 Desiree Fraser 02 9622 3422 www.countability.com.au |
1 Comments
Report Abuse
1.
yvonnevandenberg@xtra.co.nz
- Mar 28 07:38am
Why is this on the NZ website. Tax rules are quite different here.
Previous Page | 1 of 1 Pages | Next Page
Leave your comments
You must sign in to leave a comment
JOIN US
Be a part of the marie claire VIP Club for exclusive events and discounts.
Join the marie claire VIP Club
Receive news and offers by email.
