Last week on the blog, I focused on my top superannuation tips for this time of year when the end of financial year is drawing near. Aside from being clever with your superannuation, there are a number of money tricks that are worth knowing about when June 30 is approaching.
Have a read of the list I’ve put together below:
Pay your mortgage interest in advance
It’s a good idea to ask your accountant whether it’s worth paying your mortgage interest in advance in order to be eligible for a tax deduction. This only applies when certain criteria are met so make sure you ask the question before acting. The benefit of an immediate tax deduction may be even greater where taxable income is higher now than it is expected to be in future years if, for example, there is an expected break from the work-force due to maternity leave etc.
Buy business flights for the next financial year
If you’re looking to reduce your taxable income, it could be beneficial to book any travel that you have scheduled in the next 12 months before June 30. Work related travel costs can be claimed as a tax deduction in the financial year when the purchases were made.
Donate to a cause you care about
The end of financial year is the perfect time to make a large, lump sum donation to a cause that you care about. The only thing to keep in mind is that in order for your donation to be tax deductible, your charity of choice must have Deductable Gift Recipient (DGR) status.
If you earn over $90K and you don’t have health insurance, the government will slug you with an extra 1% tax (known as the Medicare Levy Surcharge). Depending on your circumstances, private health cover could cost you less than the extra tax so this is worth checking with your accountants in Melbourne.
Track down missing receipts and paperwork
Now is the time to gather your payment records, invoices and receipts for the 2014/2015 financial year. It’s a good idea to run your eye over your bank account transaction records and make sure you have the supporting documents to match all your relevant transactions.
Take advantage of the government’s new 20K tax break for small businesses
One of the biggest announcements to come out of this year’s budget was the new 20K tax rebate for small businesses who have an annual turnover of less than $2 million. If your business fits in to this category, you can claim as many sub-$20K deductions for purchases you make from budget night 2015 to June 30 2017.