7 Australian Tax Planning Tips

Posted on Jan 24, 2014 | 0 comments

It is common to worry about paying taxes as soon as the tax season arrives to legalize your money. While some people may try to adopt illegal ways to get around the taxes, however, if you are a citizen of Australia, there is no way that you can avoid taxes. Therefore, it is always a great idea to get to know about some of the tax planning tips. Before we continue, it is of prime importance to mention that tax avoidance and tax minimization are two entirely different things which are not be merged under any circumstance. While tax avoidance is completely illegal, tax minimization is absolutely legal since it only involved certain strategies and techniques via you can get to reduce the tax that you have to pay to the government. In the following part of this article, you will find 7 Australian Tax Planning Tips which will help you minimize the tax that you have to pay to the government.

· The first thing that you have to do while planning the taxes is to calculate your entire income for the current financial year. This may include your investments, your wages, your business income and even the bank interests. Once calculated, all you have to do is either put back your income or come up with a deduction. Do not forget however, that this needs to be done before 30th of the financial year under consideration

· It is always a great idea to keep a record of your deductions. Remember that you do get to enjoy deductions in your taxes for the world related expenditures. Keeping a record of such expenses is never an easy task, however, it can reduce your taxes considerably if done in a proper manner.

· Apart from work related deductions, you can also get to enjoy the non-work related deductions. This may include the charges of a registered tax agent in order to manage your tax related matters, or the interest payment that you had to pay on the funds from the bank

· If you are someone who holds an income protection insurance, the good news is that it can be claimed as the world related expenditure as well

· It is also worth taking into consideration that capital losses can also be included in the deductions you are accustomed to enjoy

· Investment property and the charges or interest paid on it can also be claimed in deductions. This may include the charges for advertising, bank fees, corporate fees, cleaning, council rates, gardening etc

· Last but not the least, if you are using your vehicle for work related matters, it is a great idea to keep a record of all such vehicle related expenses for the particular financial year under consideration. These expenses are also prone to be claimed as work related and hence you may as well get a deduction on such expenditures. However, keep it in mind that you can’t claim the commute between your home and office as work related. Quite similarly, the fines and penalties that you had to go through in that financial year are also not considered for deductions

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