This article does not constitute financial or tax advice, for which we recommend you discuss with your accountant, tax agent or financial adviser.
With the cost of living stretching household budgets and the government’s tax cuts top of mind for many Australians, this year’s tax return feels more important than ever. The good news? With tax time fast approaching, there’s still time to make some smart financial moves that could help you get a bigger refund or avoid an unexpected tax bill when the new financial year begins at least.
Here are four last-minute things to consider doing before 30 June that might make a difference at tax time.
1. Maximise personal super contributions
Topping up your superannuation before the end of the financial year can reduce your taxable income. Personal contributions are after-tax payments (unlike salary sacrifice or contributions made through your employer) and you can claim them in your tax return.
These contributions are taxed at a concessional rate, but there are conditions that need to be met. If you haven’t reached your annual cap, consider making an extra contribution, but make sure to check the current limits and rules to avoid any penalties.
Note: You’ll need to notify your super fund that you’ll be claiming a tax deduction. Check with your superannuation fund for more information, or visit the ATO website.
2. Prepay eligible expenses
If you’re self-employed or own an investment property, prepaying certain expenses like insurance premiums, business premises rent, or professional subscriptions can help bring forward deductions into this financial year. Timing these payments before 30 June could give your return a welcome boost.
3. Bring forward work-related purchases
If you’re planning to buy tools, uniforms, self-education materials, or work-related electronics now is the time. Purchasing these items before the end of June could make them deductible in your FY24-25 return, rather than waiting another 12 months to claim.
4. Make a charitable donation
Donations of $2 or more to registered charities are tax-deductible. If there’s a cause close to your heart, contributing before the end of the financial year can help both the charity and your tax return.
Just remember to keep the receipts!
Don’t forget: Keep good records!
Whatever strategies you use, make sure you keep thorough records of expenses, receipts, and donations. The ATO may ask for evidence, and good documentation helps ensure everything adds up.
Most importantly, while the above tips are a helpful starting point, they are only general in nature – everyone’s tax situation is different. For advice tailored to your personal circumstances, speak to a registered tax agent or financial advisor.
With a bit of planning now, you could head into tax time feeling confident, and maybe even a little excited about a refund!
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