4 Ways To Pay Less Tax: Financial Secrets From The A Firm
One of the most frequent questions we receive from our wonderful clients is how to pay less tax. Well, with over 150 years of combined experience providing financial solutions, and with our CEO holding a coveted position among the top 50 business women in Australia, it’s safe to say we may know a thing or two about saving you on tax.
As The A Firm’s vault of tax-saving secrets overflows as of writing this very article, we’ve brought together our team of accounting masterminds to curate the 4 easiest ways you can pay less tax and save more right now!
#1 Keep Receipts For Tax Deductions
Receipts are your best friend! At least when you’re doing your tax return, that is. The average Australian taxpayer is a smart individual; smart enough to craft a clever, round-about-way for claiming tax deductions on certain purchases.
However, the ATO possesses the authority to investigate these claims. More often than not, this results in – you guessed it – asking for a receipt as proof of purchase! By not holding onto receipts (or asking for one in the first place) you can put your tax deduction claim in jeopardy.
Not only will not having a receipt for your relevant claim make you look unprofessional in front of the ATO, it will also severely lower your chances of successfully claiming a tax deduction.
See the ATO standard’s for what needs to be included on the receipt here.
So, the first thing we tell our clients who are looking to pay less on tax is: hold on to your receipts! Particularly on large purchases, or purchases associated with your business. Better yet, have the foresight to plan out what significant purchases this year you plan on making that could be tax deductible, and keep that receipt close by!
#2 Did You Know That Donations To Charity Are Tax-Deductible?
It’s fair to say that donating to charity is one of the most humane things you can do with your money. But did you know that charitable donations can be considered tax-deductible by the ATO? Our experts here at The A Firm did, and we think you should know too!
Not only will you be spending money in a way that will benefit others in your community (and get those feel-good goosebumps when you do) but you’ll also be helping out your own tax deduction claims come tax return season.
As with our previous point, receipts are crucial here. Whenever you make a charitable donation you should receive a receipt with the details of your donation. Make sure to lodge this with your deduction claim, and store it with the rest of your receipts until then. One important thing to note is: the tax deduction is not refunded to you as a flat fee – instead, the amount you receive back is a percentage of your taxable income.
# 3 If It Involves Work, Claim Your Tax Deduction
This is the fun part and definitely one of the easiest ways we recommend our clients to pay less on tax. Claim as much as you can as a tax deduction! Okay, maybe not everything: carefully picking what you claim as tax deductible can go a long way to saving you a significant amount when your tax return comes around.
You would be surprised at what you can claim on your tax deduction: things that are related to your work are a popular choice. This is broadly encapsulated as anything that is relevant to earning your personal income. But even if something is only partly related to your work or business, that business-related part can still be claimed as a tax deduction.
Some common items that can be claimed as a tax deduction are:
- Transportation to work (fuel for your car, bus fares, etc.)
- Home office expenses – such as phone and internet bills
- Digital information subscriptions, bargaining agent fees, books
- Investment income
- You can even claim deductions on your laundry and dry-cleaning! (Provided these uniforms are specifically related to your job.)
#4 Save The Most On Your Tax And Time With An Accountant
So far we’ve given you some of our favourite, nifty tips on how to pay less tax. But if you want to save big, then there’s no better (or affordable) way than to hire a professional and qualified accountant.
An experienced accountant can also keep you updated on the Australian government’s ever-changing, dynamic employment and small business laws. Your accountant is the link between you and potential cash injections from any government grants – to be the best in your industry, you’ll need to stay up to date.
Here at The A Firm, our friendly and experienced team are not only capable of saving you significantly more money than if you were to go it alone, but we also save you time! We think our testimonials speak for themselves.
Lodging your tax and claiming deductibles can be a tedious and time-consuming process. This is especially the case if you are a business owner with a high degree of financial traffic. By hiring an accountant, you can save yourself money by spending less on tax and save yourself more of your own valuable time.
If you own a small or large business, then you’ll be thrilled to know that The A Firm is one of Australia’s leading financial solutions and bookkeeping firms specialising in your industry. Our qualified team of accountants have many years of experience in providing exceptional results for some of Australia’s most profitable businesses. So, what are you waiting for? Cut down on paying tax and save more of your income with The A Firm today!
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