Tax Advisors Bunbury

In Australia, there are several legitimate strategies and considerations to help minimise your taxation position. However, it’s important to note that tax planning should always be done in consultation with a qualified tax professional who can provide personalised advice based on your specific circumstances. Here are some general strategies that may be applicable:

1. Deductions: Ensure you claim all eligible deductions related to your business or employment, including expenses for operating your business, work-related expenses, and investment-related expenses. It is crucial to ensure you keep thorough records and receipts to substantiate your claims, there are some great apps out there such as ATO My Deductions to help capture your data during the financial year. 
2. Superannuation Contributions: Consider making additional voluntary contributions to your superannuation fund to potentially reduce your taxable income and take advantage of tax concessions.
3. Income Splitting: If you have a family business, explore opportunities to distribute income among family members who may be in lower tax brackets, ensuring it is done within the framework of tax laws and guidelines. It is important to regularly review your current business structure for asset protection and taxation purposes, to ensure you have the best possible structure, tailored to your situation and goals. 
4. Capital Gains Tax (CGT) Management: Understand the CGT rules and exemptions applicable to your investments and assets. Timing the sale of assets strategically or utilising relevant concessions can help minimise CGT obligations and reduce the overall taxation payable.
5. Small Business Concessions: If you qualify as a small business, explore the various concessions available, such as simplified depreciation rules, immediate asset write-offs, and capital gains tax concessions.
6. Prepayments and Timing: Consider prepaying certain expenses or delaying the receipt of income to shift the timing of taxable events, potentially optimising your tax position.
7. Charitable Donations: Donations to registered charities may be eligible for tax deductions. Ensure you have proper documentation and receipts for the donations made.
8. The Importance of Tax Planning: Engage a qualified tax professional or accountant who specialises in Australian taxation to navigate complex tax laws, identify applicable strategies, and ensure compliance. It is crucial to see your accountant before the end of the financial year, to potentially implement some taxation savings strategies, unfortunately, after the end of the financial year, it is generally too late.

Remember, while it’s important to manage your tax obligations responsibly, it is equally essential to comply with tax laws and regulations. Consulting with one of our accounting professionals at Breathe will help ensure that your tax planning aligns with the current tax legislation and your circumstances.

When lodging your tax, there are deductions you can claim to reduce your tax liability. This means you will be compensated for the expenses you have made throughout the year that have contributed to your work thus, reducing the amount of tax you have to pay. Here are some deductions you should consider with your accountant:

• Cars, transport and travel: Deductions are available for work-related use of your motor vehicle. This doesn’t include the commute to and from work. For more information on what you can claim, visit the ATO site here. 
• Tools, computers and work-related items: Depending on the work you do, you’ll be eligible to claim work-related expenses on items such as equipment you need in order to perform work, mobile phones and other technologies, internet expenses, stationary as well as depreciating assets you use for work. See more information on these deductions here. 
• Clothing: For some workplaces, you might be able to claim on clothing you wear, any protective gear you need to purchase, watches and smart watches and even dry-cleaning expenses. Check here to see if these deductions apply to your circumstances.
• Working from home expenses: This can include stationary and office supplies you need to perform work at home as well as energy and internet bills incurred as a result of working from home. To find out what applies to you, see here. 
• Education, training and seminars: Upskilling and self-education can be claimed by both individuals and businesses. See more information here.
• Memberships, accreditations, fees and commissions: This involves union fees, professional memberships, working with children check, agency fees and commissions and more. Find more information from the ATO here.
• Meals, entertainment and functions: In some situations claims can be made on food, drink and events for/in the workplace. See information here.
• Personal grooming, health and fitness: This can include medical assessments, vaccinations required for work, COVID-19 tests, gym fees, cosmetics and personal grooming. However, it’s important to note that these situations are limited to very specific circumstances. For example, the Australian Defence Force can claim their fitness expenses because maintaining a level of fitness is mandatory for the job. See more information here.  
• Gifts and donations: Under some circumstances you can claim gifts and donations. To see if your situation applies, visit the ATO site here.  
• Investments, insurance and super: Applicable for some situations, deductions can be made for invest expenses, income protection insurance, person super contributing and foreign pensions. 
• Cost of managing tax affairs: Last but not least, you can deduct the expenses you use to manage your tax affairs, which means the appointment you book with us can be deducted! 

It’s important to consider that not all deductions listed above will apply to you. Depending on your work and your specific circumstances will determine what deductions you can lodge. If individuals attempt tax evasion or tax fraud, then they will be investigated by the ATO and could face serious charges. If you have made a mistake by accident, then speak to one of our tax advisors who is here to help you correct the issue.

There’s a lot to know when it comes to preparing your taxes. Although the ATO provides good information and services to complete your tax return, it’s quite often that items are forgotten or information is filled out incorrectly. By working with a tax advisor, you can help you meet your tax obligations, lodge the appropriate deductions, as well as maintain your bookkeeping throughout the year. Whether you’re starting completely from scratch with a mountain-high amount of paperwork or, you’re looking to hand over your current digital bookkeeping–our team at Breathe Accounting can provide the tax advice you need.