Accurate record-keeping is essential for maximizing deductions and staying compliant. Use cloud-based accounting systems like Xero or MYOB to track expenses, income, and receipts throughout the year. These systems simplify tax-time preparation and help avoid errors.
Many employees overlook eligible deductions such as:
Like internet, office furniture, and computer usage.
Courses and certifications related to your job are often tax-deductible.
Salary sacrificing for additional superannuation contributions or a company car reduces your taxable income, which can significantly lower your tax liability.
Timing asset sales is key to minimizing CGT. For example, holding onto property or shares for over 12 months entitles you to a 50% CGT discount. Planning asset sales around tax time can reduce your tax burden.
Boost your superannuation through additional contributions, which are taxed at a lower rate than personal income. These contributions can reduce your taxable income and help you save for retirement.