Tips to Paying Less Tax

While the idea of doing your taxes may not excite anyone, if you set aside some quality time to get your finances in order, you can end up with some extra savings. The benefit of doing the hard work up front is that later on, you can reap the rewards and returns faster. To help you come out on top, we've put together five tips to help you pay less tax this year.

Charitable donations

Make a last minute charitable donation. You can claim a deduction for donations of more than $2 to a registered charity provided you have a receipt for the donation. Make sure the donation is to a Deductible Gift Recipient (DGR). Most major charities are DGR’s.

Maximise deductions

You can claim anything associated with doing your job. If the item you've purchased is used for work purposes and private purposes, make sure you include only the work-related part of your purchase in your tax deduction.

If you're not certain if an item is claimable, hold onto your receipt and let your H&R Block tax specialist advise you. So you don't miss out on any deductions, we always recommend holding onto all your receipts.

Timing Expenses

If you get all your expenses in before the end of June, you can claim them in this return and reap the benefits straight away. If you make the purchase post-July, you'll have to wait a whole year until you can claim it.

Now's the perfect time to pause and assess how you're managing your money. If you've fallen behind or become lax with your documents and receipts, there's still time to pull it all together to make sure you maximise your refund.

Investment Insights

Don't rush into an investment – before you make a move, always talk to a financial planner. Every investment should give you an advantage now, as well as in the long term. There's little purpose in saving a tiny bit of tax now if your investment goes on to lose your initial capital.

You'll also have to pay tax on any shares you've sold or investments that you've made money from. Keep this to a minimum by reducing your assets that are sitting at a loss. Be cautious of selling shares sitting at a loss and then purchasing them back when the tax year ticks over. The ATO is cracking down on this process, known as 'wash sales' and may cancel benefits falling under this category and issue penalties.  

Expert Assistance

The more information you have about your tax, the better you can budget. When you're putting together your tax plan, get advice from an expert accountant who specialises in tax. Doing your research will ensure you can max your tax refund, so ask your agent about deductible expenses and get clarity around what you can and can't claim. Often, they'll be aware of deductions you're not.

Let H&R Block Help

With over 50 years as Australia's leading taxation experts, we've had many happy returns. Whether you choose to lodge online or in-store,  your return will be double checked by one of our tax professional to make sure you're paying less tax.  

The benefits of lodging online are: