8 Important Tips For You If You Want To Pay Less Tax

No one wants to pay more tax than they absolutely should, but all too often I see people paying unnecessarily more tax than they should.

Here are 8 very simple tips to make sure you don't pay more tax than you need to - they're quick, easy, and completely legit:

1. Keep your receipts

If you're paying in cash for business or work-related expenses, make sure to keep your receipts. Lost receipts for expenses paid in cash are one of the most common lost tax deductions. Better yet, use a system like Shoeboxed or the Australian tax office's myDeductions app and take pictures of all your receipts so you don't miss out on any deductions.

2. Receive a property report

If you have an investment property and it is under the age of 40, make sure to get a quantitative report so you can claim depreciation on the building or renovations, as well as fixtures like the dishwasher, hot water system, and even light fixtures . A report from a large-scale surveyor costs about $ 400, and the good news is that the report is also tax-deductible.

3. Take advantage of your home office

If you work from home, keep a journal and you can claim 45 cents for every hour you work from home. It may not seem like much, but it quickly adds up.

4. Two income households

In a two-income family, the higher earner must pay for any tax-deductible donations and claim it on their tax return.

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Use a car log

If you use your car for work, make sure you keep a logbook. Keeping a log gives you more options, which may mean more tax deductions, when it comes to claiming your motor vehicle tax deduction. Without a logbook, you are limited to claiming up to 5,000 miles per year at 66 cents per km.

6. Salary sacrifice pension

Salary sacrifice from your wages. Not only do you reduce the tax you pay, but you also increase your retirement income.

Avoid the Medicare Levy supplement

A common and often very costly mistake is paying the Medicare Levy supplement unnecessarily. The MLS is a charge on top of the regular 2% charge that you must pay if you are a private individual and earn more than $ 90,000, or a family earning more than $ 180,000 and you do not have basic private hospital insurance. The MLS can be quite expensive as it is an additional 1-1.5% on top of the regular 2% Medicare charge. My tip is: take care of the insurance, the tax break and the hospital benefits - it's a win / win.

8. Use a good accountant

And get a good accountant. A good accountant will make sure that you claim absolutely everything you are entitled to and as an added bonus, you can claim their compensation and travel to and from their office as a tax deduction.

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