Here Are a Few Ways to Pay Less Tax

Paying tax is inevitable. However, people always look to reduce their tax bills. If you’re one of the Aussies looking for how to reduce taxable income, you’re on the right page.

Did you know through effective tax planning you could save money each financial year? Yes, but how? What does effective tax planning entail? Should I hire taxation lawyer Perth for dealing with tax issues? Read on to find answers to all your queries…

Of course, there’s no one size fits all strategy to pay less tax. That’s why we, tax lawyer Perth, have put together the following list to guide you on a few ways to reduce tax:-

Donate

Donation is a good thing to do. Not just because you can claim for tax deductions but for your own good deeds. All donations to a charity of over $2 are entitled to tax-deductible. So, it’s always a good idea to give. In fact, donating to the needy and poor is one of the best ways to spend your hard-earned money. Once you donate, file the receipt. When tax time rolls around, you just need to add the charity bills and claim them. However, always remember, you won’t see your donations come back immediately when getting your refund. Instead, you will receive a certain percentage as a taxable income. You’re allowed to claim for tax deduction depending on three types of deduction, including property or shares, money, and gifts under the heritage and cultural programs. For more information, contact your lawyer or see ATO (Australian Taxation Office) page for special rules relating to any type of donation.

Claim All

It’s important to claim all your expenses that are associated with your job. But, this’s often overlooked by many business owners and individuals. Even if the item you’ve purchased is both for work and personal, make sure to include the work-related part of your purchase in the tax claim. If you’re not sure whether to add the particular expense in your claim, hold the receipt and get it clarified with a tax specialist.

Assess your money

It’s never too early to assess how you’re managing your expense and income. Determine whether you’re managing your finances efficiently or you’ve fallen behind, there’s still time to pull it all your finances and get it right to maximise your refund when it’s about time to file your taxes.

Invest right

Never rush into an investment. Make sure every investment gives you a decent amount of return now as well as in long-term. Remember, you’ll also have to pay tax on any shares you’ve invested or sold that you generated money from. You can keep the taxes by a minimum by reducing your investments that are on loss or idle. Be cautious when selling the shares that are on loss and then purchasing them back when tax time hits. ATO is watching all your activities, and you’ll be penalised.

Get Expert Assistance

Finally, one of the best ways to reduce tax is to get expert assistance. Tax is complex in Australia. You’ll need someone knowledgeable on your side to back you up.

If you’re juggling tax matters like outstanding bills, Tax audits from ATO, etc. we, Tax law firm Perth, can help you.

The author is a professional tax lawyer working in a well-established boutique Tax law firm in Perth. Along with the team of professionals, he is committed to finding strategic solutions to complex legal tax problems. Visit https://www.munrodoig.com.au/ for more details.