At the end of the financial year, you have to file a tax return. But it is when you have got some time till the 30th June so you can think about filing it. There are few things that a person has to consider before filing the tax return so that you can increase your tax refund. Everybody wants to increase their refund on tax and want to claim the deductions that they can. So now they can think about all the things that they need to before filing the return.
If you want to know about that, then you can consider the things that are mentioned in the following points-
Get all the papers in order- You have time to fill the tax return; it is the best time to organize the paperwork that you need to prepare for your tax return. The paperwork you need to organize, or the papers you need, are statements related to investments in shares or ETF, receipts for donations, medical expenses, bank statements, records from your investment property, and work-related expenses. As from the last year, you are working from home, so you need to have everything you need to claim the deductions.
ATO has also introduced the shortcut method because of COVID, in which you can claim the deduction of 80 cents for every hour that they worked from home. You can also use the fixed-rate method, which can have better results, but you need to have a dedicated work area like a home office. The fixed-rate that you can use is 52 cents for every hour that you work from home, and you must have a record of the actual hours spent working from home. You can keep the diary to represent the usual pattern that you follow while working from home.
Prepay expenses- Do you want to increase the refund on your tax? If yes, you should pay for all that expenses that you think will attract tax deductions before June 30th. It is the best way through which you can show your income lower the next year; some of those expenses include charity donations, work-related expenses, and income protection insurance. A person may get unsure about the expenses that they have incurred related to the work, and if you are so, you can check the guidelines of ATO.
There you will get the exact idea about the money that you can spend on the work-related expenses so that you can claim the deductions. But if the work expenses are more than $300, you should have the written evidence to prove it, which can be the receipt.
Top up your super- If you contribute, then you can enjoy so many perks, it means if you earn less than $54,837 and if you add the money into the super fin then you can also make a super contribution from the government, which can be up to the maximum amount of $500. The amount of co-contribution will depend on your earned income and the money you have contributed. If you want to get the maximum contribution of $500, then the income you need to have is $39837 or maybe less, and the contribution you need to make is $1000.
But if you have an income between $39,837 and $54,837, then the money for which you are entitled will also reduce with the increase in the income. The money should be in the super fund by June 30; then, only you will be eligible for the coo-contribution for this financial year. If you can claim the tax deduction for the after-tax contribution that you make to the super fund will help you in increasing your tax refund.
Buy an asset for your business- You can buy an asset for your small business such as a car or office or any other equipment that includes in your business because for that, you can claim an immediate deduction. The ATO has approved that if a businessman claims any kind of immediate expense for the business, it will come under the temporary full expensing. Under this, a businessman can do the immediate deduction for your business improvement to the existing assets (or new eligible depreciation assets) for the business, and it should have an aggregate turnover of $5 billion or under that. If you are buying a second-hand asset, then the aggregate turnover should be under$50 million.
Hence, a person can claim the immediate deduction regardless of the eligible asset’s cost, but you need to make sure the expense should not for any private use or any other non-taxable purpose.
Manage your capital gains and losses: If you sold any assets, which can be shares, ETFs, or property; you can make the capital again. You may also want to look for any kind of investment in your portfolio that is not performing well, and the money you will use to offset the loss if you are facing it, or it can be calculated as the gain. A person should keep in mind that you should not sell the assets; you should think about your decision and take any.