Maximise Your Tax Returns Geraldton With The Help Of ITP Western Australia (WA) Regional – Tax Returns Tips

The 30th of June, 2014 seems a very long time into the future, but it will be tax time again before you know it. It pays to plan your tax returns Geraldton early so you can have hundreds or even thousands of dollars of savings when tax season arrives.

Before you begin sorting out your tax returns, it would be good to know the difference between tax avoidance and tax minimisation first. This way, you can avoid getting in trouble with the Australian Taxation Office.

What is tax avoidance?

There are a lot of taxpayers who deliberately use tax avoidance schemes to avoid paying tax, and the Australian Taxation Office alongside the Australian government take action against people who promote or use this kind of scheme. Some tax avoidance arrangements include the use of a trust or a series of trusts. This is to circumvent tax and super laws.

When the ATO and the Australian government think taxpayers participate in tax avoidance schemes, these people are issued ‘taxpayer alerts’. It would be best toconsult with a registered tax accountant firm in Australia like ITP Western Australia (WA) Regional to help you prepare and lodge your tax returns, and avoid getting caught up in such trouble.

What is tax minimisation?
This is the legitimate way of arranging tax affairs to reduce the amount of tax to pay. Investment activities are one way to help you minimise your tax liabilities, and in turn, receive tax benefits provided for under the law. If you are looking to minimise your tax liabilities when you prepare and lodge your tax returns Geraldton, the professional services of ITP Western Australia (WA) Regional can come in handy.

Here are some potential tax saving tips you may want to consider discussing with your chosen tax accountant for this financial year’s tax returns:

1. Telco expenses
If you use your wireless internet, ipad, or iphone for work purposes, you can claim these as tax related deductions. To do this – you need to keep a record of all the work-related time you spend on the internet, and the calls you make. Here’s an example:

Mobile Phone Plan
You spend $85 on mobile phone plan a month.
40% of the calls you make are work-related for 11 months a year.
So, $85 x 40% x 11 = $374

Home Broadband Plan
You spend $50 on your home broadband plan every month.
30% of use is work-related for 11 months a year.
So, $50 x 30% x 11 = $165

TOTAL TAX DEDUCTION: $539

2. Work related equipment
If you work in finance, you might need a camera, ipad, laptop, or briefcase. ITP Western Australia (WA) Regional can help you find out exactly what you can claim for.

For the full purchase of each piece of equipment or toll you buy for work, you can claim a deduction on your tax returns Geraldton. You can claim it from your tax returns right away if it costs $300 or less. However, if it costs more than that amount, you can claim its cost over time. Here’s an example:

You bought a laptop worth $2,000 on the 1st of October. Out of 366 days, you have it for 273 days. Since a laptop only have three years of effective life, you can claim 33.3% of the total cost per year.

So, $2,000 x 273/366 days x 33.3% = $496.7694

To learn more about how you can reduce the tax you need to pay, contact your tax accountant and consult about your tax affairs.

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